Where should I form the LLC? - Posted by Will
Posted by Will on July 07, 2003 at 17:16:42:
I am couple of weeks away from closing my first commercial deal, and per many people’s suggestions I am planning to form a LLC to hold this property. If you’d answer couple of questions I have about this topic, I’d be much obliged.
First question I have is in regards to taking title with LLC from the start. My loan broker is advising me to take the title as an individual(to make things simpler for the lender) when we close, and then have the escrow company to do a change in title by me quitclaiming the property into the LLC shortly after we close. Would you recommend doing it this way, or taking the title under LLC from the start? As a side note, I am doing a 1031 and my relinquished properties have my individual name on the title. Also, I am a guarantor for the loan.
Second question is in which state I should form this LLC. The property is in Okalahoma, and I live in California. For best asset/liability protection purpose, would it be advisable to form it in the state where the property is located, or in Nevada(as some suggests is the best to place), or in my home state?
I really appreciate your response in advance.