LLC And Residency
I am going to be buying several properties in another state (my first out of state purchase).
I put my properties in LLC's. Anyone know if I can open an LLC in the state where the properties are located, or does it have to be in my state of residency?
The easiest thing to do is to simply register the LLC you formed in your home state as a "foreign" LLC in the other state in which you purchased the properties. I don't think there is any advantage to forming a new LLC in other state.
I am also buying out of state (Pennsylvania) while living in Texas. I am trying to understand correctly from the Post , i.e. I form the LLC in Texas and then?
The Texas LLC will be the owner of the pennsylvania property - is it that simple? pittsund
Yes you can use your Texas LLC to purchase the other property, you just need to register your LLC with the Pennsylvania secretary of state as a "foreign" LLC. A foreign LLC is any LLC from a different state, so as far as Pennsylvania is concerned your Texas LLC is foreign, and just needs to be registered with them as such. Hope that helps.
Bansal - thanks for the info. I have all of the forms (TX and PA) and ready to go. But - one more question: I am making the offer this week on the property but do not as yet have the LLCs generated. Can I transfer ownership from my name to the LLC without too much trouble or expense? Can the property be a shareholder contribution and be considered part of my capital in the LLC?
I would say if you want to transfer it out of your name the best way to do it would be to form a corporation have the corporation give you stock in return for the property. The IRS allows this type of transaction. LLCs however do not have stock, so I'm not sure how you would transfer the property to an LLC, there may be a legitimate way to do it (other than having the LLC pay cash for it), but I'm not aware of it. So bottom line if you want to do it this way use a corporation instead of an LLC. Good Luck.