In which state should we form our LLCs?

3 Replies

Hello!

As a military family, we have purchased homes at different assignments and converted them to rentals when we were reassigned to a new location.  We have decided to form LLCs for each property, but we don't know where to file the LLCs.  Our home of record with the military is Texas.  Should we file individual LLCs in each state (where each individual property is located)?  Or should we file all of the LLCs in Texas, for out of state rentals?  

@Tonya Christensen

You need to form the LLC in the state the property resides. If dont, should you need to go court you'll be thrown out since the entity will have no legal standing in the state. It will probably screw up your state tax filings as well

Be careful how you do the LLC. Maintaining and protecting your corporate veil is difficult. If you keep the loans in your name title is in the LLC you lose your asset protection possibly, for one.

I hope this helps. Good luck.