Flipping Houses in Different States?

Question

Hello,

I had a question about flipping houses in different states, and the legality behind it.

So, long story short, my S Corporation is doing the flips.  It is incorporated with Wyoming (for obvious reasons), which is why I'm asking this question.  I do not plan on doing many of my flips in Wyoming, but rather in any state where I can get a good deal.  I understand that whenever an entity does "business" in another state, it has to file additional paperwork with that state to make a "foreign entity".  However, I don't want to file with every 50 states because it's not guaranteed that I will do business with them (or even more than once) - it's not a long-term hold, but a quick fix/flip.

Can I do flips in other states than Wyoming without doing additional filing, or is it actually required that whenever I buy a house to flip, in another state, I have to file for a foreign entity?

Thanks in advance!!

- Josh

Jerry W. · Answer

Account Closed, if you are going to do business in the state file.  Otherwise just drop the LLC and do it in your personal name.  If you don't follow the rules, then they don't protect you much.  I would file one LLC and have it own a seperate LLC for every flip you do, then collapse the LLC doing the flip after you sell it.  It is like $150 to create an LLC in WY.  When you collapse the LLC after the flip all the residuary liability goes away with closing the LLC.  Whatever you do follow the rules.  Don't scrimp or you wasted the time and effort of creating an LLC.