Operating In 3 States: Form "S" Corp. Or L.L.C.
I am operating in my home state of Virginia with my virginia LLC.
I am also operating in California and Philadelphia with my brother and nephew. I need to know if I should get seperate L.L.C's for each state or is one "S" corporation permitted?
The california L.L.C. is expensive: $800 minimum the first year(within 3 months they expect payment). Then another $800 or so after your first $50,000. In pennsylvania it is cheaper, just $360 per year.
Is an "S" corporation national, and can it be used to accomodate all three states to hold my real estate?
If your brother and nephew are partners in the houses then you need separate entities for them anyway. Check with each of those states about whether it is cheaper to file incorporation. Here in Illinois the fee for an LLC is much higher than the one for a corp. for no reason other than that most people are doing LLC's these days.
Yes you can operate in any state with a corporation but you must ususally file a registration as a foreign corporation to do business in that state.
YOU can use your VA LLC in any state to own any RE in that state.
Law on your need to register your VA LLC in any other state is very complex, and in many cases it has been court ruled that NO such regisration is needed in State B for corp or LLC from State A because in fact, that corp/LLC was NOT legally "doing business" in State B.
There's a BIG body of law on what is/is not "DB" (doing business) so as to require such a registration of out-of-state corp or LLC & not something a layman could answer or comment on intelligently for you.
If it was really important for you to know, then the only intelligent way to get a meaningful answer would be to have a local corp. lawyer brief it for you.
John Merchant
Quote:
On 2004-04-19 08:21, commercialking wrote:
If your brother and nephew are partners in the houses then you need separate entities for them anyway. Check with each of those states about whether it is cheaper to file incorporation. Here in Illinois the fee for an LLC is much higher than the one for a corp. for no reason other than that most people are doing LLC's these days.
Yes you can operate in any state with a corporation but you must ususally file a registration as a foreign corporation to do business in that state.