LLC Setup questionss

[Devang Patel]

I am from NJ and my partner is from Vegas and we are hoping to partner up in order to invest in out of state turnkey rentals in Georgia and other states where opportunities arise. Where do you suppose the LLC should be incorporated? I have read its best practice to incorporate LLC's in the same state as where the properties are. Is it true some states may require you to have two llc's setup including in addition a foreign LLC for home state?

[Ned Carey]

@Devang Patel it is generally best to open an LLC in the state where the property is located. This is because most if not all states expect you to register your out of state LLC to do business in the state. Essentially any advantage of having an out of state LLC goes away.

I can think of no reason why a state would require you to have two LLCs. There may be advantages to having 2 LLCs one in state and one out of state. Talk to an attorney for details.