in-state LLC, out-of-state LLC and investment properties?

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Icon Mini Profile tigerfamous





Joined: 11 Jul 2009

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Post Posted: Sun Jul 19, 2009 10:27 pm    Post subject: in-state LLC, out-of-state LLC and investment properties?
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Hi,

I have some out-of-state investment properties in different states. I would like to have my LLC to receive rents. If I have a LLC in my home state, can I use this LLC to manage the rents for those out-of-state investment properties? Does this LLC need to be qualified in the states where my investment properties are located?

As to investment properties, is an in-state LLC better than out-of-state LLC? would any other company structures be a good choice for out-of-state investment properties?

Thanks.
Icon Mini Profile savior70





Joined: 25 Mar 2009

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Location: Florida
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Post Posted: Mon Jul 20, 2009 4:50 am    Post subject:
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Hi,

The LLCs need to conform to the laws of the particular state where they have been set up. An in-state LLC is not allowed to carry out financial activities out-of-state. Thus, it is better to have an out-of-state LLC to manage the investment properties. However, an in-state LLC can carry out financial activities out-of-state, provided it obtains foreign qualification in the state as a foreign LLC. You need to fill out certain forms and pay some fees in order to do so. I suggest you to consult an attorney to know more about it.
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