LLC for AL rental property

2 Replies

I'm buying my first SFH rental property in Alabama and will hold it in an LLC.
1) Is it best to form the LLC in Wyoming, or should it be an Alabama LLC?
2) The loan will be in my name and then I will either transfer title to the LLC or just add the LLC to the insurance - is the latter the best way to proceed to avoid triggering a possible due-on-sale event?

@Deborah Lynch Hi, in regards to the LLC check with your CPA there are multiple ways to go about it with similar or different outcomes. Doing an out of state LLC some times is about the initial costs but your personal and LLC taxes will be subject to the state you do business or is registered too as well as residency. For the vesting, it's very common to do it, but it's up to the lender if they allow you to vest the property without a sell clause.

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