Clarification of Wyoming registered LLC and NY rental property

[Michell Chase]

So in order to get private funding for my next investment property I needed to register an LLC as they don't lend directly to individuals. I registered in Wyoming as many do but just ran across information saying that in order to "conduct business" in NY in having LLC owned rental property, I must now register as a foreign LLC with NY. Anyone have experience with that? Having to register your LLC with multiple states?

[Joshua Thompson]

Yes, I've experienced this personally and many clients of ours have as well. By living in NY or having property there you most likely have nexus which requires you to register as a foreign LLC. Every state is a bit different when it comes to determining when nexus is established.

Speak with your attorney to see if it's worth doing this or if it's worth just having that LLC in NY.

This reason is often why it's recommended to set up an LLC in the state of the property. This is not a blanket recommendation for everyone though, each situation can call for a different answer.

[Chris Seveney]

@Michell Chase

Every state you own property in you need to register as you will eventually have to pay state taxes as well