Questions on Foreign LLC's

[Leslie Hsia]

Hey all! New investor here. I have some questions regarding LLC's.

My basic understanding is that LLC's are good because they can separate your businesses expenses, and they keep your personal assets safe in the event of a lawsuit. I'll ask my questions in hypothetical situations:

1. If I live in California and buy rental property in Texas and I set up my LLC based out of Delaware, do I need a representative agent in both Delaware and Texas? (ie. Does the representative agent get involved in the purchase of the rental property in Texas?)

2. If I live in California and buy rental property in Texas and set up my LLC based out of California, do I need a representative agent for Texas?

3. More generally, where does one find a representative agent for creating a foreign LLC, and what are his/her responsibilities with regards to setting it up? And is this someone who I would need to pay annually to keep the LLC's license (or whatever the term is used) renewed?

Thanks in advance and Happy Holidays!

[Ujwal Velagapudi]

1) Yes, need a registered agent for each state you file an LLC in. No, the agent doesn't get involved in anything at all operationally. There are companies that will act as your agent and allow you to fill in their name + address when filing an LLC for a small fee ($25-100).

2) Yes

3) Yes, paid annually. There are end to end firms that do it all for you from filing, completing registered agent information, and to the annual filing + fee. I've never used a national company, but you can just google (state) + registered agent and you'll get a bunch of results for what you're looking for. Most of them will offer the full end to end service as well.

Personally, besides a registered agent for the state you wish to file, all other services are a waste of $$ in terms of creating an LLC for most people, especially with simple RE transactions. Wouldn't be a bad idea to chat with your CPA or even an attorney to just make sure you understand the tax implications and legal entity for each state as they will vary.