Usually the “in state” LLC is by far the least expensive. What I usually do is own the asset in an LLC that is based in my state of choice. Since you don’t have to be in state to own property, neither does your LLC.
I have an operating company (another LLC) in each state that handles contracts, leasing, rent collection, paying the bills and so on for the properties. I write an operating agreement between the two companies in case its needed, like after a lawsuit.
I chose CO due to cost and the fact that I can create the LLC on the web for $25. Its a complete online transaction, though you need an in state Registered Agent (I use an attorney there who only charges me if he has to do some work). I also have one in NV, these are also able to be formed on the web, but the original docs need original signatures.
Once you have the LLC created, you can get on IRS.gov and fill out an online SS4, request for EIN. You need this to open bank accounts in the company’s name.
I tend to stay away from east coast states for company formation because the states that have been around longer have some arcane rules that are hard to keep track of. If you really want a Georgia LLC, talk to an attorney.
I am looking at purchasing a rehab home through an LLC. I do not know for sure if the deal will go through. Should I set up the LLC first before i pursue the property or can I sign it “as Nominee” and then assign it to the LLC after it is formed.
Also does anyone know if an LLC in Georgia has the legal strength of one formed in Nevada or Wyoming. I was thinking about setting mine up in Wyoming then qualifying it for business in Georgia.
I looked at NV and WY as well as DE, which was once the favored state for forming companies. DE and NV have made this a revenue stream, but their court decisions have made “piercing the corporate veil” to get at the owner’s other assets very difficult. WY claims its case law is as bullet proof but adds that the best the other party can get is a charging order that they cannot collect on by forcing liquidation of the company.
I ended up using CO because they are an inexpensive jurisdiction, require no regular reports to the state, and the owner of the company is not listed in the public records. Just the Registered Agent. In NV, a web search will reveal the owners.
Thank you. Do you happen to know if Georgia is at all a viable option for starting a real estate holding LLC.
That of course would be the simplest for me, but i want what’s best not simplest.
But if you form an LLC in one state and qualify it to do business in another the LLC is still under the state of formation’s legal jurisdiction if a case is brought. The question was if Georgia’s court system is plaintiff-friendly or do they have favorable asset protection laws.