Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago on . Most recent reply

User Stats

8
Posts
3
Votes
Alex Yakubovich
3
Votes |
8
Posts

LLC State of Incorporation

Alex Yakubovich
Posted

Hello. I need to open an LLC (Corp2Corp contact is coming), but I'm not sure in what state to do it. Currently I am located in TX but in 6 months I will relocate to WA.

What option is better:

1) Open LLC in WA ($200 fee) and register a foreign LLC in TX ($750 fee). Also there will be annual fees in WA

2) Open LLC in TX ($300 fee) and register a foreign LLC in WA ($200 fee) when I move there

3) Open LLC in TX ($300 fee) and domesticate it in WA ($200 fee) when I move there. I'm not sure how much I need to spend on it. Probably, at least, I will need to pay for a new registered agent ($150)

I'm not sure how difficult it is to do domestication in comparison with the registration of a foreign LLC

WA has $60 annual fees, and TX has $0 annual fees (for LLCs with less than $1.23 million in revenue, I would probably never reach this number anyway)

Most Popular Reply

User Stats

389
Posts
575
Votes
Jeff Nash
  • Accountant
  • McKinney, TX
575
Votes |
389
Posts
Jeff Nash
  • Accountant
  • McKinney, TX
Replied

I agree with @Steve Vaughan as you probably want a domestic entity with respect to where the property or business is located.  There are foreign filing fees and other considerations when you are out of state. In Texas for example you have the Texas Franchise Tax report to file whether you have gross receipts or not.  

  • Jeff Nash
  • [email protected]
  • 844-627-4829
  • Loading replies...