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Updated over 1 year ago on . Most recent reply
LLC creation and out of state investing
Hi all -
I'm currently living in NJ. I'm looking to make short term rental investments in South Carolina and Florida. Can I create an LLC in Wyoming and make out of state investments?
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#1 Tax Liens & Mortgage Notes Contributor
- JD, CCIM , Real Estate Broker
- Tuscaloosa, AL
Quote from @Ashana Singhania:
Hi all -
I'm currently living in NJ. I'm looking to make short term rental investments in South Carolina and Florida. Can I create an LLC in Wyoming and make out of state investments?
Yes, you can. You need to register as a foreign (meaning out of state) LLC in the states where you invest. The expense is minimal. You will also need to pay a small annual fee for a company in those states to act as your registered agent for service. That is the company upon whom lawsuit papers may be served, the same as serving you, if you are sued. It is a requirement in all states for all foreign entities registered. Unless you register, you will not be allowed access to the courts if you ever need to sue for eviction, etc. If you do not register and wait until you do need to sue (hopefully never, but it does happen) then the registration delays will add extra time to the wait before you can get the tenant out.