I live in California and own properties in three different states. After reading many forum posts I've decided that its a good idea to form one or more LLC's and then transfer the properties into them.
The question I have is which state should I use? The state where the property resides, or in California? Or maybe a third state?
I own properties in California and out of state. Because of the $800 annual filing fee for each LLC (i.e., for all CA LLCs, and very likely for each foreign - out of state - LLC) I don't use LLCs.
If you do go the LLC route (with the associated filing and maintenance costs) you should carefully understand the specific protections provided by each individual state's LLC law, since the limitation of liability afforded varies by state law .
Hi @Don Jackson , you're supposed to form the LLCs in the state's where the property is located since that is where you are legally doing business. You could also consider a holding company (say in WY) and that WY LLC owns each of the child LLCs in the various states.