Setting up an LLC

[Marques Harrer]

Hello all,

I just bought my first rental property and now am in the process of looking into protecting myself and my asset by setting up an LLC. I live in Washington state and the rental is also in Washington state. I know that it would be pretty straight forward to set up an LLC in Washington state, but I know it's not the cheapest state to do so. I've heard of some people setting up LLCs in different states in order to get the lowest price, but I'm wondering if that's a bit shady or if it was just something I've heard, but doesn't really happen. Does anybody have any insight into the possibility or plausibility of setting up an LLC in a different state than one lives and works in?

Thanks!

[Steve Vaughan]

I live in WA and hold my little houses in my personal name.  I have only my 5+ unit commercial apts in LLCs  @Marques Harrer.

Not sure how WA will treat an outside LLC, but with my WA LLCs I had to deal with B&O quarterly reporting the first year or 2 until I became an 'active non-reporter' That was awesome when it finally happened.

A couple other risks quitclaiming little houses with debt over to an LLC - loss of hazard insurance, title insurance and DOS. Problems not much talked about when being advised to cover your assets. Not a tax guy or attorney. Just what I've done. Cheers!