Is there a reason for REI not to just open a separate LLC for each state and purchase under that LLC?
ie. I buy property in Florida under a Florida LLC, Texas under a Texas LLC etc.
wouldnt that be the easiest way re: taxes and registering as an out of state purchaser?
Everyone has a different approach to how they want to handle. I think your strategy is fine but does not give you the most legal protection. Speak to a real estate CPA/tax accountant to get the advice you need.
Is there a reason for REI not to just open a separate LLC for each state and purchase under that LLC?
ie. I buy property in Florida under a Florida LLC, Texas under a Texas LLC etc.
wouldnt that be the easiest way re: taxes and registering as an out of state purchaser?
Everyone has a different approach to how they want to handle. I think your strategy is fine but does not give you the most legal protection. Speak to a real estate CPA/tax accountant to get the advice you need.
Financial Advisor · Cedar Park, TX · Member since 2017 · 88 posts · 29 votes
6y
With the Texas Series LLC, you can form one main entity and protect each property. One tax I.d. One bank account, etc. Whether you have to domesticate the TX entity elswhere turns on whether you are collecting rent on those states. This is what I recommend.
Attorney · Slidell, LA · Member since 2016 · 322 posts · 179 votes
6y
Best practice is to have the LLC in the same state as the property. States are very guarded on their real estate laws, which are different in each state, and they will give far higher preference to an in-state LLC than out of state. Sometimes, they may even disregard an out-of-state entity. However, an out-of-state company can own the in-state LLCs. So, for example, you could have a Wyoming LLC own a FL LLC which holds a FL property, and also owns a Texas series LLC, which has multiple TX properties.