We are considering buying our first multifamily property in Ohio and plan to hold it within an LLC. We're trying to decide between forming the LLC in Ohio or Wyoming.
We've heard Wyoming offers stronger anonymity with lower costs, while Ohio might provide specific benefits for in-state real estate.
Can someone please elaborate on the advantages and disadvantages of each state for our situation? Specifically, we'd like to understand:
- Liability Protection: How does each state's legal framework and case law compare in protecting our personal assets from liabilities related to the property?
- Anonymity: What specific features of each state's LLC laws enhance privacy, and how significant are these differences in practice?
- Tax Implications: Are there any tax advantages or disadvantages to consider when choosing between an Ohio or Wyoming LLC for owning Ohio real estate? In case it is important, we are based in CA.
- Administrative Requirements: Are there differences in ongoing fees, reporting requirements, or other administrative burdens between the two states?
Since this is our first property, is it advisable to use a single LLC for both personal asset protection and holding the property, or are there reasons to consider a more complex structure?"
