If I live in one state but am buying income property in another, in which state should my new LLC be located in?

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If I live in one state but am buying income property in another, in which state should my new LLC be located in?

Asked on June 28, 2017 under Real Estate Law, Idaho

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

There is a slight benefit to creating it in the state in which you will own the income property. Fundamentally, LLC law is the same across all states--there is no real difference for any practical purpose. However, while you can have an LLC created in state 1 transact business in state 2, because the LLC from state 1 will be "foreign" to state 2, you will have to "register" it in state 2--so you will do sets of paperwork: creating it in state 1, registering it in state 2. If instead you create it in state 2, where the property is, you don't have to separately register it, saving yourself a tiny amount of additional time and effort.


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