Investing In Multiple States

[Marc Mason]

I live in Texas and I am interesting in investing in property in other states, specifically WI, NC and possibly OH.  I am looking for advice or guidance about how to set up the business entity that will allow me to do this.  For those of you who have invested in multiple states I would like to get your feedback.

Thank you!

Marc

[Abena Cannady]

Hi @Marc Mason. I'm no professional when it comes to this and you will probably find may different opinions on how to do this (and if to even form LLC at all). I'm in the same situation and what I decided on is to set up a separate LLC in each state. Some states require you to register as a foreign entity if you are going to do business there but are not incorporated there. So that was primary reason for that. I also would not hold too many properties in one LLC. I am still thinking whether I should form a main LLC in DE or elsewhere that will hold all the other LLCs. My accountant advised that there was no tax advantage to doing that so for now I will hold off and just do it state by state.