Forming a LLC where i live or where i do business?

Forming a LLC where i live or where i do business?

Rental Property Investor · San Francisco, CA · Member since 2019 · 10 posts · 4 votes

Being a new investor who has flipped 1 property I'm curious about creating an LLC. I live in California (Bay Area specifically) but am focused on buying property in the Houston area. Is it better to form an LLC where I live in California or where I am doing business in Houston? While I don't plan on leaving California, I do plan on eventually branching out to other markets outside of Texas to buy property (Not sure if that matters). Any thoughts or advice would be helpful. Thank you!

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  • Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    5y

    @Brian Tschida just make sure your insurance has you covered! LLC is overrated in my opinion but best to talk to a lawyer and CPA.

    Welcome to the Houston market! Feel free to contact me with any questions.

  • Joe FunariBusiness Member
    Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
    5y

    @Brian Tschida If you set up your LLC in CA it will be considered a "foreign entity" here in Texas. To register it here only costs $750. The link for more info on the state web site is here: https://www.sos.state.tx.us/co... But your looking to set up a Texas LLC I recommend using Copp Law. They have helped me set up partnership LLC's and are great to work with. Their web site is very detailed and you can e-mail them if you have any questions: https://www.copplaw.com/ Hope this helps.

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