Business entity formation

[Account Closed]

Hello, 

I'm a first-time out-of-state investor. I live in Washington DC but set up an LLC already in Kansas because I was planning to buy properties in Kansas City. But after looking there for a while I think I might expand my search to other states.

Any advice on the best way to handle the business entity formation? I'm an individual investor and doing it alone at the moment. A lot of people set up entities in Wyoming it seems. Since I'm just starting out, I'd like to make sure I can do this right for the long run. Thanks!

[Tim Delaney]

Don't overthink the LLC thing. I see way too many people getting caught up on that rather than finding a deal. You are already throwing money away potentially by setting up an LLC in a state you may not even invest in. If you set up an LLC in Wyoming you may still need to set up another one in the state you invest in or at least register that Wyoming one. All of that costs money and more importantly right now time and effort. Just find a deal first.

If you really still want a complicated LLC structure you can often set that up between when you put the home under contract and closing. I have done it numerous times.