LLC in different states

[Mark Vandzura]

I have several rental properties in my home state of NJ, all owned in a NJ LLC. I'm wondering, if I buy out of state should I set up an LLC in the states where properties are located?

[Patrick M Nichols]

Originally posted by @Mike S.:

WY: anonymity and the charging order are the sole remedy (ie better asset protection statute)

Not only this holding is providing these two benefits to all the sub LLC but also, it is the only one filing the tax return as all the sub LLC are disregarded for tax purpose.

Ok, yes, having a holding company does allow you to file one federal income tax return if it only owns other passthroughs (i.e. LLCs, LPs, etc). You still need to file returns in every state you own property though. 

With the Wyoming recommendation, I thought you were going in the direction of that state having no corporate or personal income tax. A Wyoming entity is still subject to income tax in the states in which it derives rental income.