I am currently in WA, and would like to begin investing in the Indianapolis area. Where do I find the best resources for determining where I should setup new LLC? If most of business is likely conducted in Indiana, is it better form there? Are there any pros/cons in being a foreign LLC?
Hello Steven! You ought to hire an experienced Attorney. That being says just know that LLC laws are enforced by whatever State you are filed in. It will not be governed in the state you work in but the state that is formed in. Some states are more lenient than others, so you want to file in the State that is more lenient to you, the filer. I just read a book by an Attorney recommended by Robert Kyosaki and also uses him and is pretty smart. The Attorney spoke a lot about forming a LLC and avoiding personal liability.
Good luck to you!
The rule of thumb is always to use the strongest entity which has the lowest costs - the main issue is the foreign filing fees. As @Michael Lewis Lee mentioned, it is judged by the state in which is was formed - this article touches on a few states that hold different benefits to forming an LLC in them. The best strategy I have seen to working around the foreign filing fees involved would be to create a land trust to hold the asset, then assign the LLC as it's beneficiary. This way it would be the Land Trust conducting the business of the property while still maintaining the liability protection you desire.
In the end there are an infinite number of ways to cut the pie. To identify the best way would probably involve you talking things out with an experienced attorney. I am partial toward Texas LLCs since they have strong laws reinforcing the LLC and no annual fees - and you can tie in that handy Land Trust to also remove your name from public records.