Setting up a LLC in Maryland vs British Virgin Island

[Hyungwook Lee]

I am a real newbie real estate investor. My friend and I are planing to set up a LLC in Maryland or Virgin Island. Does anyone know pros and cons for a foreign country based company doing active investing in state of Maryland in the U.S. Plus what would be pros and cons for doing real state investing as a LLC entity in Maryland. I like to hear about factual information more than subjective thoughts about the topic.

[JR T.]

You wouldn't be able to do any real estate investing in Maryland with just the alien corporation. It would have to obtain a Certificate of Authority to do business in Maryland, pay taxes in Maryland on the money it earns here and the cost to do all of this is the same $300 a year you'd pay for just a Maryland LLC. There's no business purpose to structuring the company your way that I can think of.