I'm at the point of setting up my LLC in which to keep my buy & hold investment properties for the long term in the Buffalo N.Y. & surrounding areas. I'm curious to know what would be the most tax-advantageous,investor friendly state in which to set up my LLC in.I've heard & read about the Delaware Series LLC but I've also heard about Utah & Nevada as being good states in which to form your LLC in.
@Jerome Whigham no legal or financial advice but should be setup where the property is located.
I heard that only 8 states including Delaware, Utah and Nevada recognize the series LLC which is a very nice structure for buy-and-hold investors.
I'm in Utah and use it, but don't know anything about interstate structuring. As @Jeremy Tillotson suggests, your structure is only as good as the lawyers and accountants who can support it. So make sure you are not creating a professional services quagmire for yourself by getting too tricky.
@Jerome Whigham Sounds like you might have already listened to podcast 109. If not, listen to it, it's great info.
You should look into setting your LLC in states such as Delaware or Wyoming for maximum protection. You can do some further reading here: http://www.corporatedirect.com/
Check the link under Bulletproof Your Corporation. Garrett Sutton is very knowledgeable and speaks on the Rich Dad circuit. I use this company for my corporate formation and management and am happy with their work. I don't receive anything for endorsing them.
It's not completely accurate that you should setup your corporate structure in the state you are operating in. It's more for your protection than any massive tax advantages and well worth while.
NYS is very FUNKY when in comes to LLC protection. I have several layers of protection. It's good to have an "S-Corp" and have"LLC" for different things. One for Marketing, one for property Rehab, One for property ownership. A financial adviser told me once that if I were to be sued for one of My "LLC" it will only be for that one instead of the package. Also with an "LLC" my account said fund mixing is different from a "CORP" b/c the IRS wants everything separate.
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