Are you looking strictly for an investment property?

In this case, he already had a NJ LLC and was contemplating creating a Michigan LLC strictly to do business in Michigan.He could use the NJ LLC to do business in Michigan, if he applies for and is granted an authority to do business in Michigan with what would be the foreign NJ LLC.If he were to use a foreign NJ LLC in Michigan, and if he were to be sued, his entire assets in the foreign NJ LLC would be exposed not just the assets acquired by the NJ LLC while in Michigan.If he used a Michigan LLC instead, to do business in Michigan, and if he were to be sued or incurred a liability while doing business in Michigan, any assets in the NJ LLC is not exposed to the Michigan lawsuit only whatever assets the Michigan LLC owns.This should be the case unless you have strange transactions going on such as mingling the assets of the different LLCs, sharing bank accounts etc...either personally or between the LLCs.

You could purchase real estate with it, invest in alternative assets, you could lend money to others (subject to strict rules and regulations), etc.With $22k sitting in a Traditional IRA, my first question to you would be what does your financial picture look like?

What are the risks / potential liabilities if we operated an LLC for rental properties but used a checking account strictly for business purposes in our personal names?  

The Federal rules only require 30 days hold but state rules that are more strict (Meaning to the benefit of the borrower), would take priority over Federal rules.for a while back not too long ago, the average days to foreclose in IL was almost 700 days.

They have strict ideas that contractors do the minimum just to get by inspections.

Security deposits are allowed, subject to very strict provisions.

My friends that invest in northern and southern California do it strictly for appreciation and are making so much money in other businesses that they use the real estate as a tax shelter.  

Lenders are strictly prohibited for accepting any kind of payment if a deal does not close.

These loans will be resold on the secondary market so the underwriting is strict and standardized.