Which is the best state, if any, to create an LLC?

[Bradley D.]

Hello:

When I purchase my first property I do want to LLC it; however, it will be in another state than the one I live in.

Over twenty years ago, there was a lot made of the Delaware LLC as it offered certain benefits, as compared to other states, and your property did not have to be located, nor did you have to live in Delaware to reap the benefits.

Today, are there any states that stand out for offering certain benefits of using their LLC, or has it all evened out at this point?

Thank you Bigger Pockets community for youprofessional feedback.

Best Regards,

Bradley 

[Austin Fruechting]

Originally posted by @Nicholas Lohr:

@David Dachtera  Isn't it true that he is going to have to take title and mortgage in his own name? 

I get it that having an LLC if he is starting a long term real estate "business" is a good idea, separation of expenses, etc... And he may have the option of transferring the title to the LLC later on assuming that doesn't trigger the due on sale clause. I'm just trying to make the point that having one rental property where the title and mortgage are in his own name doesn't necessarily need to have an LLC attached to it as it will serve no limiting of the liability in that case.

For his first deal he will have to control AND own it. 

Banks lend to LLC's all the time. Even for small deals. However on those smaller deals non-recourse loans are not typical. They underwrite the individual and make them sign a personal guarantee and it's based on them, but the property legally goes to the LLC. So you don't have protection as far as the loan, but you have all the legal separation if a tenant sued or something like that.