Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply presented by

User Stats

1,186
Posts
728
Votes
Nghi Le
  • Investor / Lender
  • Seattle, WA
728
Votes |
1,186
Posts

Flipping in Multiple States with a Partnership

Nghi Le
  • Investor / Lender
  • Seattle, WA
Posted

I have a partner here in the state of WA with me, and we want to flip houses remotely in other states. Although I already have an LLC that I do flips with here locally, my partner and I want to create a new one for this venture so that we both can count these flips as part of our experience (so that in the future we get better treatment from lenders).

My question is... if we are going to be flipping houses in multiple cities (right now looking at Chicago, IL but have considered Ohio cities and a couple other places), does it make sense to:

1.  Create the LLC in WA and then register it in each state that we flip in.  An IL attorney told me that the fee to create or register a foreign entity in the state is the same: $500.  If I create it here in WA ($200 filing fee, $75 annual renewal), I'm very familiar with how to manage the admin stuff, and I can act as my own registered agent.  Although I think I'd also need a registered agent for the foreign entity in Chicago.

2.  Create the LLC in Chicago and then register it in each state that we flip in. That way I don't have extra costs in WA. But not sure if it's difficult or more costly to have our partnership's "home base" in Chicago. Am I going to be double-taxed if I flip somewhere else using a Chicago LLC? WA state doesn't have state income tax.

3.  Create LLCs in each state that we flip in.  This way doesn't make sense to me and seems the most costly, but wondering if there is an advantage to it.

Loading replies...