CA residents acquiring real estate in NC thru a partnership LLC

[Sri Voodi]

Title pretty much says my situation. 3 investors in CA are pooling money to buy a SFH in Charlotte. It will be a cash offer so no financial institution is involved. Some questions -

Where should be set up the LLC? CA or NC? What would be the tax implications?

Do we need to set up operating agreement by ourselves or involve a lawyer to draw it up? All 3 of us will have equal partnership. This will be a BUY and HOLD. Exit strategy for a partner would be - either one of the existing partner buying out or finding a new investor to replace. 

If one of the existing partner exists by finding a new partner do we need create a new LLC or amend the existing LLC operating agreement?

Any insight is helpful. 

Thanks

Voodi

[Basit Siddiqi]

Bring all your concerns to an attorney and have them create the LLC and draft the operating agreement.

I think most small investors should create the LLC in the state where the property will be located in, in this case, North Carolina.

If items such as business friendly case law, anonymity, charging order protection, etc are important to you, you may want to consider popular states such as Wyoming, Nevada or Delaware for LLC formation.

Best of luck.