is it better to have a Nevada or Delaware LLC for my real estate investing biz in NY??

[Elle Xuxin]

we are moving to NYC and going to set up a LLC for my husband's sound design business and wondering if it is better to start a separate LLC in another state or just use the same LLC to start with.. point is we don't have any experience with a LLC and we're new to real estate investments..

Please reply with detailed advantages and disadvantages.. Appreciated!!

Happy New Year Everyone!! :D

[Vikram C.]

The primary advantage of a DE LLC is not aasset protection but that DE has a much greater depth of case law on corporate matters than most other states. This makes it possible for your lawyer to give you better legal advice than for, say, NV or WY. In addition, most corporate lawyers in big law firms will be experts at the corporate laws of their state + DE, while few corporate lawyers outsite NV and WY will be experts at those states corporate laws.

Elle, regarding a foreign investor, you can get a loan from a foreign investor who is unrelated to you. See a good corporate lawyer and tell him that you are interested in a "registered portfolio debt." This allows you to pay interest to the foreign investor and deduct the interest payment as a business expense while the foreign investor will not be subject to U.S. income taxes on the interest paid. (You can also have the foreign investor be an equity owner in the business but they will then be subject to withholding on their distributive share of the income.)