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Updated over 2 years ago on . Most recent reply
DC Resident buying a House in Maryland under an LLC
I'm a DC resident (living in a home in DC) and thinking about buying an investment property in Maryland using an LLC with two members (husband and wife) Should I register the LLC in DC or Maryland? what are the pros and cons? Also what are the potential tax consequences?
Most Popular Reply
![Joe Norman's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/178314/1624366248-avatar-josephnorman.jpg?twic=v1/output=image/crop=1125x1125@103x0/cover=128x128&v=2)
Buying a property in an LLC will increase your taxes and decrease your access to financing. On the other hand, it may reduce your liability but only if done properly (e.g., zero co-mingling of funds).
My advice to most investors starting out is to purchase in your own name and get an umbrella liability policy.