LandInvestors.com Forums **Ask A Question** Registering an LLC in multiple states

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    Neil H
    Participant
    Post count: 141

    Hi everyone,

    I’m new to this and I’m working my way through the Land Academy training. My CPA has recommended setting up an LLC in each state I do business. This can involve registering an LLC formed in one state as a ‘foreign entity or business’ in another.

    Has anyone else done this? Any words of wisdom you can share about setting up your LLC before you got started? Anyone have a regret with any aspect of setting up their LLC that they’re willing to share with the group?

    Thank you,

    Neil

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  • Kevin Farrell
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    Post count: 1197
    ProAdvanced

    Neil – one LLC in my home state. Two reasons 1) very inexpensive in Indiana and 2) I did it online easily. Not even major corporations are incorporated in each state that they do business in. I don’t think incorporating in each state that you do business in would be a reasonable thing to do.

    I suspect that most people in the land business have one LLC. We need to run a poll on this question.

    Neil H
    Participant
    Post count: 141
    Pro

    Thank you for the quick response, Kevin.

    Rod Hall
    Participant
    Post count: 300
    Pro

    I recommend moving this question to the bottom of your list. Just find a cheap state and register an LLC. Registering your LLC is ultimately about state income taxes. In general your tax home (where you live and make money) is where you pay income tax. If you sell a property in a different state did you make the money there? No. The LLC itself is a “pass through entity”. All income flows to your personal income tax return. Some states do in fact have strict foreign entity requirements. I live in CA. It is one of the worst. I am not registered here but don’t do business here either. Even so I would not let that stop me. Your LLC is going to be way under the radar. It’s just a way to look more professional and keep the bookkeeping straight.

    Franco O.
    Participant
    Post count: 5

    Good to know too.

    Franco O.
    Participant
    Post count: 5

    Anyone has experience on which state is the cheapest to register an LLC?

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