If my LLC is in New Jersey what do I need to do to buy property in a different state, Philadelphia pa. Can I just buy or do I need to file foreign entities for the state?
I live in NJ and have New Jersey-based LLC's. When I wanted to buy a property in New York state, my accountant told me to create a New York LLC. I was able to use my accountant's New York address as the address of my LLC.
What type of Property are you buying?? If you're purchasing SFH w Conventional Loan an LLC will limit your options in finding a lender that lends to LLC or if you're planning to refi soon after or get a HELOC your options will be limited. If you're purchasing Cash not planning to refi, or if you're purchasing Commercial Property w a Commercial Loan absolutely get a LLC or form an entity..
You don't need to set up a new entity actually. However you will have to speak with a CPA in regards to the taxes for both states
There are many options available in a situation like this. Ideally you want the LLC to be in the state with optimal laws supporting liability protection while paying the minimum in annual fees and requirements. Generally it would be more convenient to create the LLC in the state of the property to avoid foreign filing fees, but if you end up holding the property in a land trust (which can be beneficial both for financing, anonymity and estate planning) you don't even need to pay foreign filing fees [because it is the land trust conducting business in that state rather than the LLC.]
If this is your first time investing across state lines the best bet would be to connect with and experienced attorney and CPA to discuss your options and find what fits your portfolio the best. After you've done it once or twice it is pretty straightforward, but there are so many different strategies out there that you can end up getting lost trying to do the right/best thing.