Guidance on LLC - Rental Property in DC living in VA

[Paul Nicklin]

Hi BP Community, First post - feels like I have been listening to the podcast and reading the forum for an eternity!

I am hoping someone could give me some guidance on forming a LLC. I am about to close on a multifamily in Washington DC (Yay!). Its for investment purposes, I am going to be renovating, holding and renting. I have homeowners & an umbrella policy lined up. I currently live in Northern Virginia and will be out of the country by the end of the year (US State department, so paying VA State taxes whilst out of the country).

Advice on whether to setup the LLC in DC, VA or Delaware? If formed in VA but the property is in in DC will this mean more paper work / expense?

Sorry for the newbie question and thanks in advance for any info.

Paul

[Anne Russell]

Hi Paul!

I am in about the same place as you -  just closing on a small unit in DC, living in Northern Virginia (and funny enough also from an FSO family! You have to get a license to rent in DC. It's pretty straightforward and you can do it all online  at https://dcra.dc.gov/service/residential-housing-re....

I formed an LLC for a separate business inside DC and found it equally simple to do from the DCRA website. I thought about doing it in Delaware but figured it would be easier to keep everything straight if I did it in DC. However, I think you have to have an agent registered in DC to receive any LLC related mail if you do it that way.

Who did you use for your homeowner's and umbrella policy?