LLC for Home in AZ but live in WA
We have a home and reside in WA State and just purchased a rental in AZ. We also have a home in AZ but we are curious if we should set up a LLC in AZ or WA for the rental? Are their different laws for AZ vs. WA?
@Mary Jo Mertens Arizona is far more landlord friendly and business friendly. I would think that being in King County, you would want to do everything you can to protect yourself from the spread of Seattle's landlord laws and taxes into King Co. It will happen.
@Mary Jo Mertens As an Arizona Broker and Property Manager I would refer you to legal and accountants for the answer.
As a property manager it would make absolutely no difference in any dealings I would potentially have with you. Again it's all about legal and tax!
Welcome to the world of AZ investments!!!! The rental demand is high!!!!
-
Real Estate Agent AZ (#BR512549000)
- Blue Sky Living, LLC
- 602-751-7577
- http://AZBlueSky.com
- [email protected]
@Mary Jo Mertens, it doesn't matter much what state is more landlord-friendly, as you're legally doing in business in Arizona. You should be forming an Arizona LLC. Having said that, it doesn't hurt that forming an LLC in AZ is a much easier process... and unlike WA, there are no Annual Reports :) Rule of thumb: form your LLC in the state where your property is located. Hope that helps.
Thank you Matt,
It does help. If we have a rental in WA and in AZ should we have 2 different LLC's?
@Mary Jo Mertens, yes, that is the proper way to do it. Since you're legally doing business in both states... so for example, if you had an AZ LLC that owns your AZ property and your WA property, you'd need to register your AZ LLC as a Foreign LLC in WA.