Starting an LLC where you live or where you invest?

[Doris Logan]

Hello All,

I currently live Georgia, but I invest in Ohio as well as Georgia and I would like to set up an LLC for my future investments. My question is since I live in Georgia should I set up my LLC to purchase a property in Ohio in Georgia? Or should I set up an Ohio LLC for my future Ohio purchases? Which is better and why?

Also, I have a business partner in Ohio, so he would act as the registered agent in Ohio. 

Thank you in advance. 

[Darrin Carey]

If you invest in both states, but only have a partner in Ohio, you may need TWO LLCs to keep it clean. As @Bob Okenwa said, a Georgia LLC can register in Ohio as a foreign LLC (the cost is the same)

Some things to consider:

• Does Georgia have a minimum tax that applies to LLCs
• How do you structure deals with your Ohio partner?
• What type of deals are you doing in each location?
• Is there going to be S corp taxation involved?

Those questions and more will influence how you set up your entity(ies). A CPA can help with the various tax implications, and business attorney can help with the asset protection, business setup side.

You may need two different attorneys, as finding one licensed in both states could be a challenge. And avoid companies like Legal Zoom for this. You really need an attorney you can have a serious discussion with, not just give you the standard product.