Buying properties with an out of state LLC?

[Kareem Protain]

I plan to create an llc to handle my investments, but I live in New York City and do not plan to do business here. At least not yet. I want to start out of state and build my way back to New York. I'm aware of the potential pitfalls and drawbacks as far as penalties go, as some states regard this as illegally doing business and I also don't want to file as a foreign llc. Any way I can do business as an llc out of state without penalties and hefty fees?

[Eamonn McElroy]

@Kareem Protain

"I also don't want to file as a foreign llc"

If you want to evict a tenant, I imagine you'll want to use that state's legal system to do it.

Generally, organize the LLC where the property is located. If you organize outside of that state, register in the state where the property is located as a foreign LLC. You're conducting business. Keep everything above board and don't save pennies only to pay dollars later.