Location of your LLC

[Carlos C.]

One general question... Why is preferred or suggested to form the LLC that owns the RE rental property in the same state where the RE is located?

[Natalie Kolodij]

Because they are a state based product- so you want it in the place where the business operates. 

If you had one in your state, you would need to register it as a foreign entity doing business in the state with your rentals any way and could end up paying extra annual fees. 

I'm sure Kohler's firm will explain everything on your call- but I also would put money on them setting  up a very elaborate multi state structure involving either Delaware or Nevada even if you only own 1 rental.