Texas LLC for Arkansas Multifamily

[Matt Brooks]

My wife and I have formed an LLC in Texas. We own one rental property in TX with plans to purchase more in TX. We live in Arkansas and are looking to purchase a Quadplex in Arkansas. Should we utilize our existing Texas LLC to purchase the property in Arkansas? I believe there is a “foreign entity” (forgive my ignorance) type approval process we would need to complete to be able to use TX LLC in Arkansas. Or, should we form a new LLC in Arkansas? Tax benefits or implications either way? Thank you for your guidance and advice in advance!