Posted on: 19th Jul, 2009 10:27 pm
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.
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.
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.
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.