Form LLC in TX but operate in AL

[Phyllis Effah]

I am a TX resident  and my partner is a CA resident. We are working on acquiring our first property soon.

We want to form an LLC for our rental property in works in AL. Is this the best way to go? Should it be formed in TX or AL?

Thank you for your helpful comments.

[Phyllis Effah]

Originally posted by @Stanley Bronstein:

@Phyllis Effah First of all, I would wait to form the company until you see what your lender is going to require. Secondly, if you're buying an income producing property in Alabama in an LLC, it's undoubtedly going to need to be registered in Alabama. (I'm not an Alabama attorney, but I'm fairly certain that will be the case). Secondly, California has an $800 per year tax on their LLCs.

 Thank you for your reply..Coming in first time and having no experience in acquiring a real estate property, wouldnt the banks look down on me despite my excellent credit score?