LLC in Minnesota, 5-Plex Not - Any Concerns?

[Craig Fitzsimmons]

I just had an offer accepted for my first “commercial property,” a 5-plex. My other rentals are duplexes and SFRs, so they’re just under my personal name with an expanded umbrella policy. If I develop an LLC in Minnesota where I reside, but the 5-plex is in Wisconsin, does this present any potential legal issues? I know it doesn’t matter for taxes, but I’m more concerned about legal protection. And for that matter, is that much more important to do the LLC for the MFR, or is the protection the same whether it’s in LLC or personal? Thanks in advance! Craig

[Tim Swierczek]

@Craig Fitzsimmons With with all due respect this is the sort of question that you should actually ask an attorney. Asking a question like this in the forum can only lead to someone who sounds like they know what they're doing but who really has no idea of the intricacies between state lines and other LLC laws.

Upfront in structuring and advice attorneys are cheap in comparison to what it will cost you if you make the wrong choice on it bad advice from a BP member.

There are a couple great real estate attorneys on BP I recommend @Brad Schaeppi