Fix and Flip LLC - Which State Do I Chose?

[Mary K.]

Hi, 

I am doing a long distance fix and flip in a different state than the one I live in. I plan to purchase the property through an LLC and am wondering if it matters which state I create it in. She is in construction and will be paying for the repairs via her own business LLC so we will not be exchanging funds during the flip.

A quick google search says Wyoming has a lot of advantages.... wondering what BP folks think.

[Edith Alvarado de Cortez]

@Mary K.

Hi Mary,

I've been doing my research about entities also, and found that the best state to set your LLC in is Wyoming because of its strong business protection and privacy laws and also is super cheap compared to other states, it's like just $180 or so each year but you add an extra legal protection layer to your business. Then as Aaron K. says you'll need to foreign qualify your LLC. But since we live in a very litigious country I think it doesn't hurt to be extra protected.

Best regards!