Creating a new LLC - State Specific?

[Brad Louden]

Hello, I assume I can open an LLC and it makes no difference what City/State I purchase a property in correct?

[Account Closed]

Originally posted by @Brad Louden:

Hello, I assume I can open an LLC and it makes no difference what City/State I purchase a property in correct?

It makes a big difference. You can purchase in any state using an LLC, but the state you create your LLC in matters. Also, usually you register your LLC as a foreign entity in the state your property is in if in a state differrent than the state you creat the LLC in. Make sure you have an Operating Agreement and follow it accordingly or the LLC offers no protection. There is no tax advantage to having an LLC. It is for legal protection, if done correctly and properly maintained.

If you don't have a lot of equity in your investment, usually insurance is a better way to go.