Fix-and-Flipping with out-of-state entity

[Seyi A.]

Hi BP Fam,

If I set up an LLC in, say, Illinois, and then purchase a property in Ohio, renovate and sell it, does that count as "doing business in Ohio" such that I would have to register that Illinois LLC in Ohio as a foreign entity doing business in the state of Ohio? Thanks in advance.

[George Skidis]

To do business in another state "Other" than the state you are domiciled in reqires the following. 1. Pay the foreign entity fees to the secretary of that new state. 2. Pay a firm or individual to act as your registered agent in the new state. 3. File a tax return in the new state.