Happy Holidays Everyone,
We are excited to be purchasing our first investment property. It is a short-term rental in Windsor Hills, Kissimmee, Florida. We would like to file an LLC. What are the pros and cons of filing in Colorado our home state or Florida?
you are going to get mixed answers from everyone here on bigger pockets. You can do either option. You may want to look at what state offers laws that are more forgiving to landlords. If you never plan on investing in your home state, I would think you are better off setting up the LLC where your property is located. Also, another option that a lot of members recommend is to get an umbrella insurance policy which can offer even better asset protection than an LLC can.
Disclaimer I am not a legal expert and always recommend dealing legal advice from an expert.
Thank you Jason for the input.
I am not sure what the best answer is, but I can tell you what I have done.
I have a Colorado LLC that manages our rentals in Florida. The properties are still titled to me personally but I hope to do a quitclaim to get them under the LLC.
We actually have several Colorado LLCs for to manage several properties. One mistake I made was not having it be exactly one to one.
My goal is to have one "umbrella" LLC that owns the LLCs that own/manage each property. I think that is the best way to go but would love to hear other opinions.