Out of state investing in Philadelphia

[Cory Lader]

Good Evening BP. I am looking to invest in Philadelphia but I currently reside in NJ. I am struggling to wrap my head around the disadvantages of registering as a foreign LLC as I have been unable to find some decent information/advice regarding foreign LLCs. I did some of my own digging and found some exemptions on the state's website (link below, see exemptions 7,8, and 10). Does anyone have experience utilizing these exemptions? Am I overthinking this? What experience do you have forming LLC in a different state without a street address? I want to put this issue to bed and get on with my investing career! Thank you in advance for any and all feedback!

*I have no intention of utilizing any feedback as legal advice. I am just looking for general feedback on out of state investing and to hear your experiences with establishing companies out of state.

https://www.dos.pa.gov/BusinessCharities/Business/Resources/Pages/General-Rule-Exclusions.aspx?fbclid=IwAR2a_wwotS3ehG6rr0UIG7yyaXeJBMSV9XArX9Xy319EjK7lV42ZaEzKOLo

[Chris K.]

@Cory Lader

If I'm using LLCs, I always try to incorporate an LLC in the state where the property sits. It's not the only way to do it. But I think it's the simplest way to do it for many reasons.

As for the street address, I typically utilize a commercial registered agent. The fees are minimal so it has not been a big issue. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.