Starting An LLC for a Property

[Alex Terraciano]

Hey Everyone! I'm in the process of closing on my first investment property in California and I'm going to put it under an LLC. Does anyone recommend opening the LLC in another state with potential tax benefits, or does the LLC have to be incorporated in California since it's a CA property?

[Leslie Anne Morris]

I am from California and it isn't fun to have an LLC there or an out of state LLC. California gets you either way! Buy it in your personal name and reap some benefits - namely the ability to purchase utilizing a conventional loan. Then insure with a robust policy that includes not just home owners but also commercial liability protection.