Investor · Albuquerque, NM · Member since 2015 · 5 posts · 1 vote
We are doing our first deal - a BRRR rehab long term rental 4 flat in Chicago. We live in Albuquerque, NM. We first would like advice on whether or not to form an LLC for the property and secondly if we should form the LLC in Illinois, New Mexico or a more tax friendly neutral state. I would appreciate advice. I do know that we would probably have to sign a personal guarantee on the property either way.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y
@Craig Nairn I feel like this is a tough one to answer in a forum since no one here has enough information about your personal situation to really give you a good answer. I am guessing you would want to form the LLC here in Illinois though since you have to pay Illinois taxes either way. It seems like it would be a waste trying to create in a different state unless you had some grander notions of asset protection or identity secrecy. That seems unlikely on a 4 unit purchase.