Can a Wyoming LLC own an investment property in ANY state?

[Dan N.]

I am getting conflicting information from 2 entities that help create LLCs

The property I am buying is in Arkansas, but I want to open an LLC in Wyoming

One entity that helps creates LLCs is telling me that the WY LLC can own a property in Arkansas.

Another entity that helps creates LLCs is telling me that the WY LLC cannot own a property in Arkansas, and I will need to create another LLC in Arkansas and the WY LLC will own/manage the Arkansas LLC.

Can anyone who has actually created a WY LLC and used it to purchase property elsewhere answer this question for me please?

Thank you

[Jerry W.]

@Dan N., to the best of my knowledge a Wyoming LLC can own property in any state, however the LLC must register as a foreign entity in that state. There are a lot of good things about Wyoming LLCs, but the favorable Wyoming laws don't matter as much because the state you are in will apply the laws of the state the property is located in. If you file an eviction then it must be filed locally, if your LLC is sued they will sue locally. There are some benefits to having an LLC on reduced liability, but there are more expenses. One your loans will be a higher interest rate, next you will have annual filings, the cost of a registered agent every year, and items like that. Just like most things in life there are good and bad to both choices. I really like LLCs compared to corporations because of the free stepped up basis for passing property to my children. A sub S election will probably block the free stepped up basis benefit though.