Should the LLC be located in the state of the property?

Should the LLC be located in the state of the property?

Member since 2019 · 7 posts · 2 votes

I've been researching real estate investing and it's fairly obvious that the best way to shield myself from liability is to have my real estate held in an llc. Does anyone have any recommended books or websites that detail the best ways to go about forming said llc? In my personal case, I'm looking to long-distance invest (I'm going through David greene's book currently). Is it best to have the llc in whatever state I decide to invest in, or is it better to find a state with better llc laws regarding business protection?

Thanks for your help

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  • Rental Property Investor · Oakland County · Member since 2018 · 151 posts · 97 votes
    6y

    Hi @Tony Mi,

    Speak with a real estate attorney in the state that you're looking to invest. Many real estate lawyers will give you a free consultation with advice on how to best structure your business; they'd get paid when they prepare and file the documents.

    IMO, it's always best to consult a professional to ensure that everything is done: A. Correctly and B. Tailored for your needs. 

    Edit - Im also going to add, talk to an attorney in the state that you live in and also find out in which court potential lawsuits would be held. You'll want to consider if it's worth it to you to fly across the country for a lawsuit.

  • Member since 2019 · 7 posts · 2 votes
    6y

    Thanks so much for your response @Kyle Shankin, I really appreciate it. It'll be very interesting to figure all of this out.

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