Purchasing Real Estate with an out of state LLC

[Blaine Moore]

Does anyone know the repercussions of purchasing a property in Ohio, with an Arizona LLC?

I would purchase the property with my AZ LLC, then refinance after six months in my name, releasing title out of the LLC.

I know, I've also been told to just an Ohio LLC, but is that really necessary?

Your help is greatly appreciated!

-Blaine

[Pamela Sandberg]

If you don't at least register the AZ LLC as a foreign entity in Ohio, the Ohio courts may not offer you the protection of an LLC. This means that an Ohio tenant could go after your personal assets if they got a judgment against you.

IMHO, it's worth it to either start an Ohio LLC or register the AZ LLC as a foreign entity in Ohio (see a local OH lawyer if you have questions about foreign registration).