Use my LLC Florida company in all USA?

Question

Louis Alvarez · Answer

William,

Generally speaking you don't need to create a new entity for each state.  A Florida entity can do business in any state.  However, you typically would need to "register" the FL entity with the Secretary of State in the other state(s) where you plan on doing business.  By registering you are basically telling that state that you are going to be doing business there.  As others have indicated there are legal reasons you want to (and are required to) register.  Having said that there are legal reasons and/or tax reasons that you may WANT to set up separate entities (be they FL entities or some other state) to do different projects.

My advice is to hire a qualified CPA and/or attorney, lay out the facts and your plans and then have them assist you in setting up the correct structure.  As helpful as forum members may want to be, everyone's facts and circumstances are different and a little good knowledge, applied incorrectly could cost you.

Regards,

Louis

Adam Schneider · Answer

@William Laurent   -- I agree with @William Morrison re differentiating between the hold and a wholesale. If you are doing business in another state, you need to "foreign qualify".

What's meant by doing business?

In today’s mobile/virtual world, it can be difficult to know just what constitutes doing business in a state. If you’re uncertain whether your particular business needs to foreign qualify, you should check with your attorney or accountant. They'll ask about the operation, physical presence, frequency of in-person meetings, % of revenue in that state, etc.

Foreign Qualification means submitting a Certificate of Authority app (might be called a Statement and Designation by a Foreign Corporation) with the Sec of State.

Here's why this might be important. If you don't, you could be subject to fines, back taxes, and THE INABILITY to sue in a state where you aren't registered.

I hope this helps.

Adam Schneider · Answer

@William Laurent -- you are asking questions that are a mix of business decisions, legal questions, and tax questions. You really need to make your own call. A buy/hold investment is going to have you arriving at different conclusions than virtual wholesaling.

William Morrison · Answer

William, wholesale and maybe fix and flip maybe different, but the "hold" has rules associated with where the asset is held.  North Carolina, Maryland and all I have looked at require you to file as a foreign entity if the LLC is not in the same state.  I found it to be worth registering in those two but not California.  California is rough on smaller investor out of state entry, not as bad if your big enough but hard to startup (in my opinion).

William Laurent · Answer

Hi everyone, and thanks for your advise @Louis Alvarez, everything is more clear for me now. I'll definetly hire a CPA advisor for more details.

Succes to everybody, and thanks again.

Ayodeji Kuponiyi · Answer

@William Laurent the best person to answer your question is CPA/attorney.

Bert Wharwood · Answer

Great advice Louis.

William Laurent · Answer

thanks @Adam Schneider I will do that

William Laurent · Answer

Hi @William Morrison and @Adam Schneider, Thanks so much for your answers, it was very helpfully for me.  So I know that isn't so easy when you want to open business out of my own state, but now I have everything more clear.  NOT USE MY FLORIDA LLC, to make business out of state, I think is better right?

Also what @Sheri Collins said was very important, to avoid sued, but the thing is, that could be good at the beginning but then, when the portfolio start to grow up how many companies I should have? I'm pretty sure that has to be another way to simplify and also protect from any sued.

What do you think guys?

And thanks so much again for your value information and knowledge.

Success for all of you.

Use my LLC Florida company in all USA?

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