Question about LLC in multiple States

6 Replies

I'm looking in multiple states to buy "flip & hold" . I want to buy under an LLC but have come to realize they are state specific.

How would I go about setting up an LLC so I can search and buy properties in several states under this entity? My states are Connecticutt, Ohio, Indiana, Wisconsin & Illinois.

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@Joe Matthews from an insurance perspective, we never need to know what state the LLC is domiciled. We can also have multiple LLC's per policy as long as the LLC's have common ownership.

Let me know if you need any connections in Milwaukee.

Originally posted by @Joe Matthews :

I'm looking in multiple states to buy "flip & hold" . I want to buy under an LLC but have come to realize they are state specific.

How would I go about setting up an LLC so I can search and buy properties in several states under this entity? My states are Connecticutt, Ohio, Indiana, Wisconsin & Illinois.

We have to think about both the tax and legal implications. We don't want to create an LLC structure that is going to create more compliance fees than needed. You will only know what is best for you if you talk to an attorney about your risk, then you need to talk to a CPA on if the structure that the attorney's recommended structure is tax efficient.

I have seen a holding entity that owns multiple SMLLC in the state you flip. 

You can open an LLC in any state and buy the properties in any state under this LLC. You'll need to register LLC with the Secretary of State, in your example in each states of Connecticut, Ohio, Indiana, Wisconsin & Illinois before buying the properties. Talk to your CPA about tax return, almost definitely you will need to file Partnership return per each state where you'll purchase properties.