Foreign Entity Required in IN if flipping?

[Dave Blackman]

Anyone with experience flipping in the state of Indiana know whether it is required to file your LLC as a foreign entity there in order to purchase property, rehab, then sell it? I spell it out since flip can mean many things to many people. Much appreciated!

[Matt Horwitz]

@Dave Blackman, there are two things going on here. What's legal and what'll happen. A lot of title companies won't require a foreign LLC registration to close, but some may. I'd phone a few title companies and ask about what LLC documentation they need at settlement.

Now there are people doing business in Indiana with non-registered out-of-state LLCs. Does that mean it's legal. No. But it's common. However, both the Secretary of State and the Department of Revenue have the power to impose penalties and fines. Additionally, since your LLC is not registered to do business in the state, you won't be able to take someone to court in IN.

So do you have to? No. Should you? Yes. You're doing business in Indiana.