Registering Colorado LLC as a Foreign Entity in Texas

[Steve Sorensen]

Hi,

I am refinancing a BRRR property into my LLC in the Houston area. I purchased the property in my LLC that I formed in Colorado with no issues. I've refinanced another BRRRR into the same LLC without any issues also. Now, however, this new refinance lender is requiring that my LLC be registered as a Foreign Entity in Texas. It actually looks like I maybe should have done that originally but nobody said anything to me about it previously.

So I'm working to fill out Form 313 and, for anyone familiar with it, question 10C is saying that I need to have a Texas business address...it says it doesn't have to be my primary office but it has to be "where service of process may be personally served on the entity's registered agent during normal business hours." I have a sole proprietorship LLC, it's not like I have "offices" so I don't understand how to get around this.

Has anyone been through this before? Any suggestions on how to put a property in an LLC when investing from out of state? This whole thing seems silly, wouldn't the whole point of registering the LLC as a "Foreign Entity" be that I don't have an address in Texas? Otherwise I'd just create a damn LLC in Texas and not mess with the Foreign Entity registration.

Ultimately, what I need to do is put my Texas property into an LLC one way or another. The other option I was thinking about was forming an LLC in Texas, but again, I don't have an address in Texas other than rental properties so I don't think that would work either. Anyone have any suggestions?

[Adam Bartling]

I replied to your Facebook post also, your lender is just being a PIA.  There is no need unless this lender has that specific requirement. Which makes no sense.

now what limitations are out there, for some banks that I represent they like being within driving distance of the property so they can go see it before they loan on it, or I can broker credit unions but only two people who could be members of the credit union.

let me know if you want me to take a look at it.