Newbie Investor looking for advice

[Ghanee Smith]

Hi,

I currently live in Denver, CO and I have an LLC listed here. I am in the process of buying property in different areas across the country including Chicago, Philadelphia, DC and Denver. Should I form an LLC in Delaware, or form an LLC in each of the states where I will be investing. Thank you.

[Crystal Smith]

Originally posted by @Ghanee Smith:

Hi,

I currently live in Denver, CO and I have an LLC listed here. I am in the process of buying property in different areas across the country including Chicago, Philadelphia, DC and Denver. Should I form an LLC in Delaware, or form an LLC in each of the states where I will be investing. Thank you.

Much depends on the laws of the state you'll be investing in along with the cost of doing business. We have an LLC in Nevada and in some states we use the LLC, while in others the cost of doing business w/ the Nevada LLC wasn't worth it. The out of state LLC is considered a foreign entity which meant additional costs & paperwork. Sometimes it's worth it to have the out of state LLC; sometimes it's less costly to bite the bullet and establish an in-state LLC.

It also depends on your investment strategy- For liability purposes, we hold some property in our out of state LLC, while flipping properties with the in-state LLC.