Creating LLC in CT vs NY

[Roman Ustoyev]

Hi, I am NYC resident and looking to invest in multifamily property in CT as an LLC. What are the pros and cons of registering LLC in CT vs NY?

[Edward Schenkel]

Hello @Roman Ustoyev

I am an attorney licensed in NY and CT. The vast majority of my practice is in CT though. 

From a liability perspective, it should not matter whether you create the LLC in NY or CT. If there is a dispute concerning the property, CT law will apply as the law is for real estate matters is that you go with the law where the real property is located is.

If you have a desire to keep your identity private, as some investors do, I would recommend setting up a CT LLC with another state LLC as the sole member (DE is a good one). If you create your LLC in NY, then you need to register to do business in CT which requires providing the Sec of State of CT with the members of your NY LLC.

I would also consult with a tax / accounting professional and look at the fees to creating in NY v. CT. This may also factor into your consideration. But from a liability standpoint, it does not matter. 

Any specific questions feel free to message me or ask here.