Multi-state LLC?

[Richard Mahn]

I live in Texas and have one rental property in KS. I'm looking to acquire another rental property in TX, and I'd like to establish an LLC to benefit from the liability protection. What do I need to know about a TX LLC operating in KS?

[Blair Poelman]

There is no "right way" that will apply to everybody.  There are some general guidelines that will fit most folk, but your unique strategy will require a customized approach in order to achieve your objectives. 

The BEST way to get it done, i guess you could call this the "right way", is go to an asset protection/estate planning or real estate attorney with an outline of exactly what you're plans are, and have them give you a proposal for a corporate structure.

It's not the cheapest thing on the planet, but worth doing.  Once you have the structure set up (correctly) you can easily expand it as your portfolio adjusts in size and your strategies and techiques change.

There was a post just the other day about how the discussions on LLC's here on BP is not great. I tend to agree, simply because most of us aren't attorneys, and therefore aren't legally qualified to give that advice, and the way all do our own deals vary greatly.

My advice on this - spend the money and hire a pro and have them get you going in the right direction. I have a pretty good guy here in Utah that has done a lot of this for me and for several of my clients.  DM me and I can give you a referral to him.