Goals, Business Plans & Entities
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 8 years ago,
Which state to locate LLC?
We currently live in Oregon, we have 2 single family rental properties located in Arkansas, we're looking to purchase our 3rd property in Indiana. Our 2 current rentals are under our own name, but we are planning on setting up an LLC on Legal Zoom and would like to transfer the 2 existing properties to the LLC. I have a few questions about this -
1. Which state should we set-up the LLC in? Is it legal to set it up in Oregon even though the houses are in other states? Or do we need to set up an LLC for each state we have investment properties in (one for the 2 Arkansas houses and a new one for the Indiana house)?
2. Are there any risks/costs we need to plan for when we transfer the 2 existing properties in Arkansas to the LLC?
3. I'm not sure how to go about actually transferring the title, was planning on reaching out to the title company we used when we closed on the houses. We have traditional financing on both houses, so I need to contact our mortgage company as well?
4. For the purchase of our 3rd house, would it be better for us to purchase it under our own name then transfer it to the LLC, or purchase it under the LLC once it's set-up? We will use traditional financing for this property as well, I know commercial loans can have less paperwork, but are they generally higher rates than residential?
Lots of questions, appreciate any advice on this topic!