Flipping in Multiple States with a Partnership

[Nghi Le]

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.