I live in Texas. I am purchasing rental properties in a different state. The properties will be managed by a local property manager. I have formed an LLC in the state where the properties are located to hold the properties.
Next, I would like to setup a bank account in the LLC name to receive the property manager draws. I submitted the LLC certificate, Operating agreement and EIN information to the bank. They believe I need a foreign LLC certificate here in Texas to set up the bank account.
Do I? All of the business related to the properties will conducted in the state where the properties are located. The only thing that happens in Texas is the fact that I live here and the bank branch where I am setting up the account which will receive property manager draw is in Texas.
Hi Kevin. If the LLC is incorporated in another state, then by default any business activity conducted in the state of Texas (including banking) would probably classify it as a "foreign" entity. Seems to me it would therefore have to be registered with the state of Texas as a foreign entity, but I can't speak to the local laws of Texas.
Would it be possible to open up a bank account within the state of where the LLC is incorporated? I would think that might be the easier solution here. Since you have access to online banking I wouldn't see any issues with operating your business this way, so long as you have a legit mailing address to provide (i.e.registered agent?) to the bank for receipt of important documents.