Best State To Register LLC
Which state is the best (cheapest) for registering an LLC? I know it used to be delaware, but I heard that nevada is now the best.. does anyone have any input?
I know some states also charge an annual fee.. anyone know what they are or how can i find them?
Thanks!
I've also heard good things about wyoming.
I use my home state...
See if this site has value for you.
http://www.legalzoom.com/pricing/llc_pricing.html
state fees in Colorado are a buck according to legal zoom-wow!
Respectifully disagree. Mississippi -- which typically is not known as a debtor friendly state -- has the best LLC laws in the country. ONE TIME ONLY fee of costs only $50 2 set 1 up (no annual renewal fee), very little info is required of the organizer/manager/member, and best of all, you need not provide any information about yourself as owner (provided u set up appropriately). Also, state statute specifies that the corporate veil of immunity cannot be pierced due to inadequte documentation (e.g., operating agreements)
Anybody know a site where I can look up the better of two states? I am moving to GA and want to know if I should set up an LLC there, or if I should take it elsewhere?
Thanks, Grey
Delaware is generally considered the best state for LLCs by asset protection attorneys. However, most of the "helpful" Delaware laws will never make any difference to the typical real estate investor. And don't forget the Full Faith and Credit clause of the US Constitution... a judgment in one state must be respected in another. In other words, using an out-of-state LLC won't magically protect anything. If you are a resident of a state with an income tax, you'll still have to pay state income tax even if your LLC is established in a non-tax state.
My advice to the typical real estate investor: establish the LLC in your own state of residence.
While I agree with lawyer Boumann that the typical REI is better off inc'g at home normally, there is one BIG advantage to inc'g out-of-state:
.A potential litigant, who's considering suing the owner of "that property", which is owned by that OOSLLC, can only learn the name and address of that out-of-state LLC and its out-of-state agent ... if YOUR name and addres are not on the registration anywhere.
From the lawyer's viewpoint, if he/she is looking into suing that OOSLLC, he/she'll find no helpful info on you or your identity... and that's just what you want, because that lawyer cannot then determine who you are, your other assets, wealth/poverty/financial status, etc.
If that lawyer does sue your OOSLLC, he'll then have to get "service" (legal notice) on that OOSLLC, and that's not always a simple thing, and it's more trouble and more expensive if it is OOSLLC with no in-state agent for service (AFS).
Yes, your OOSLLC is legally required to register itself in any state where it's owning and operating rentals, but again, if your name and address don't show, they're not gonna know YOU own it.
So even if you do LLC at home, don't use YOUR name or home address on the reg. forms...OWNER of the LLC isn't normally required on the forms, only the name and address of the person who's doing the reg. for you, and maybe the manager of the LLC... and if this is your lawyer's or accountant's name and address, that's not going to give the outsider much helpful info.
Make durned sure you KNOW what you're going to be paying for ANY LLC or Corp you pay to have formed. So you can avoid any unpleasant surprises.
A friend of mine in WA, went to the trouble of forming a NV LLC, and his total costs, before he finished, exceeded $7500! Hardly cheap
Most states will require you to register your foreign LLC, pay an annual fee, and register an in-state agent for service of process in any event, so you may not really save yourself any money. Additionally, jurisdiction will be in-rem rather than in-personem in any event, so it's not like you can just not show up if you get sued and get off scott free.
In response to the original message, CA LLC is $800 a year in min. taxes. I just use Trusts for now as I only have my first rental property.
Yeah, California isn't a good place to use an LLC because of that minimum tax ... at least in this business. It's good to check out the alternatives there ... e.g. I've seen the S corp work well for some friends of mine.
www.Bizfilings.com also has info on prices. :-o
If your LLC will operate in a single state, then save the problems relative to complying with multiple state laws. Stick with the state you are operating in. But if the LLC will have presence in more than two states, try to start the LLC in the state with the most relaxed laws. An Arizona LLC is a good example. There are no annual reports or periodic filings. No annual fees or taxes exist. This site: http://www.paralegal-plus.com has good informatin on Arizona LLC - the laws, operation and dissolution procedures.state laws.
Everyone knows about Nevada, Delaware, Wyoming or Utah, but Arizona? Are there any proven decisions for asset protection?
Quote:
On 2005-01-06 22:09, Carl_upton wrote:
If your LLC will operate in a single state, then save the problems relative to complying with multiple state laws. Stick with the state you are operating in. But if the LLC will have presence in more than two states, try to start the LLC in the state with the most relaxed laws. An Arizona LLC is a good example. There are no annual reports or periodic filings. No annual fees or taxes exist. This site:****Must participate a while before posting URL's*** has good informatin on Arizona LLC - the laws, operation and dissolution procedures.state laws.