Im looking to set up my business LLC. Should I look up properties in my state first before I decide to set up my LLC in my state or research different states before I set up my business?
What did everyone here do? Did you just set it up in your state and still buy properties in different states or did you set up an LLC in the state where you primarily buy land?
Thanks!
@gordonj I set mine up and started looking for properties in my home state when I started because I didn’t know what else to do. It ended up working out fine for me.
If I started over today, I’d probably pick a state where I saw lots of activity and where properties didn’t sit on the market for a long time, and I’d register there.
Registering as a foreign entity or setting up a new LLC in each new state might be the “correct,” way to do it, but it’s just not practical. I wouldn’t even consider going through these motions until I’ve done about a dozen deals within a 12 month period in that new state and I’m confident I’ll be doing a lot more. Until I get to that point, I just use one of my my existing entities and treat it as a one-off deal in another state.
@charlotteirwin Thanks for the reply! Ill look into opening it in my state for now.
When you say treat it as a one off deal when it is in another state, is there any legal implications that may occur if you dont register in that state you did a deal in?
@gordonj not legal advice, but if it’s just one deal, that usually isn’t enough to be considered “doing business” in that state. So, no, I don’t lose sleep worrying about any legal implications in this kind of scenario.