Do I need a LLC each state I rent property.

[Tracy Harris]

I own a property in NY state that I'm currently renting. I live in TX and want to set up a LLC to mange my NY Peoperty and any future TX properties. Can I list my NY property under a LLC that I register in the state of TX? Thanks for your feedback.

[David Piqueira]

As others said, you will probably need to register your Texas LLC as a foreign entity with the state of New York. You might want to look at NY state laws to see if operating a rental property counts as "transacting business". Most states don't really define what this term means, but they list a handful of exclusions. If the state excludes rental properties as transacting business then there is no need to register as a foreign entity.

You might also want to look into setting up a separate LLC for properties in each state. This would protect you more, and the costs would probably be roughly the same as having a single LLC you have to register in two states.