Buying properties with an out of state LLC?

Question

I plan to create an llc to handle my investments, but I live in New York City and do not plan to do business here. At least not yet. I want to start out of state and build my way back to New York. I'm aware of the potential pitfalls and drawbacks as far as penalties go, as some states regard this as illegally doing business and I also don't want to file as a foreign llc. Any way I can do business as an llc out of state without penalties and hefty fees?

Eamonn McElroy · Answer

@Kareem Protain

"I also don't want to file as a foreign llc"

If you want to evict a tenant, I imagine you'll want to use that state's legal system to do it.

Generally, organize the LLC where the property is located. If you organize outside of that state, register in the state where the property is located as a foreign LLC. You're conducting business. Keep everything above board and don't save pennies only to pay dollars later.

Basit Siddiqi · Answer

@Kareem ProtainWhy don't you just file the LLC in the state that you plan to do business in.You may be required to have a registered agent in the state.

Kareem Protain · Answer

Then I suppose I'll go down the foreign LLC route since the states I have in mind require a registered agent.

Eileen Mazza · Answer

I work with many investors that have business entities in states other than where they reside. Some open LLC's in Nevada because there is some tax break (so I've heard). As long as there is a business entity to close with, that's what matters to me.

Buying properties with an out of state LLC?

Buying properties with an out of state LLC?

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