LLC in every state i buy???

Question

Hello Everyone

My CPA who does NoT specialize in RE just told me i have to open LLC in every state i buy a property if i want to put the property under my LLC?? Not sure if it is true. any comments??

Naseer Khan · Answer

@Gurjeet Brar I haven't researched every state but the majority require you to register as a foreign entity if you conduct business in that state. Generally, owning investment property where you collect rent is considered "conducting business."  Just owning property is not conducting business.

And don't forget, if you open an out of state LLC, you will also have to register as a foreign business in California because the FTB considers a California resident who makes management decisions for out of state investments as conducting business in California.

This response is not legal advice and does not create a client relationship. You should seek counsel for your specific situation.

Peter Vekselman · Answer

@Gurjeet Brar I'm currently doing deals in about 8 states.  I have only been asked by one closing agent (in California) to get my LLC registered in that state.

By the way, they did some research and realized I did not have to.

So I would not overthink this one......go get some deals......

PM me if I can help further......

Peter

Gurjeet Brar · Answer

THANK YOU PETER AND NASEER FOR THE GREAT INFO. IT DEF MAKES BETTER SENSE

Gurjeet Brar · Answer

thank you for the info

Lelith Walker · Answer

No it is not true.  GA does not require that you have an LLC in their state and you do not have to register your LLC in that state either.  Some states do require registration so check first with an attorney.

LLC in every state i buy???

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