Out of State Series LLC in Massachusetts- is it Possible? What are the implications?

[Samson Kay]

Hi all,

I'm a new real estate investor in the State of Massachusetts and have been researching into getting an LLC for some added protection for my property. The goal is to get 5+ properties over the next 2-3 years.

On to my question.

In my research I found out that an LLC cost approx. $500 annually for each LLC. Also, that Series LLC's are not recognized by the state of massachusetts. However, after talking with a CPA, about out of state series LLC formation, I found out that I could still get a series LLC in one of the states where they are recognized. But I would pay the out of state LLC fee, then a foriegn LLC fee to the state of massachusetts.

Is this true? If I put each property under its own LLC, What would be the benefit of having a series LLC if I would end up having to pay an annual fee to 2 states for each separate property. And if its not recognized by the state, what are the legal ramifications?

Has anyone from massachusetts tried to set one of these up?