Hi, I am NYC resident and looking to invest in multifamily property in CT as an LLC. What are the pros and cons of registering LLC in CT vs NY?
Most states expect ou to register your LLC in their stae if you do business there. SOo if you own property in CT, they will want you to regiester your NY LLC with CT. It might be easier to just use a CT LLC. It may come down to how much eachsate charges in taxes and fees.
@Roman Ustoyev a better strategy may be to set up LLC protection-friendly state like Wyoming or Nevada and then register to do business in Connecticut.
To your benefit, there is a line of cases holding that Wyoming / Nevada law must apply even if any lawsuits were to originate from Connecticut.
Set up LLC there and then venture into the less friendly states like CT / NY. Contact an attorney there for more information.
Hi @Roman Ustoyev Regarding this matter, you really should consider consulting an attorney, they know better. I have some attorneys to recommend from CT that also practice in NY.
Hello @Roman Ustoyev
I am an attorney licensed in NY and CT. The vast majority of my practice is in CT though.
From a liability perspective, it should not matter whether you create the LLC in NY or CT. If there is a dispute concerning the property, CT law will apply as the law is for real estate matters is that you go with the law where the real property is located is.
If you have a desire to keep your identity private, as some investors do, I would recommend setting up a CT LLC with another state LLC as the sole member (DE is a good one). If you create your LLC in NY, then you need to register to do business in CT which requires providing the Sec of State of CT with the members of your NY LLC.
I would also consult with a tax / accounting professional and look at the fees to creating in NY v. CT. This may also factor into your consideration. But from a liability standpoint, it does not matter.
Any specific questions feel free to message me or ask here.
ct does not require a publication