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Buying or Selling a Home/multi-family property in neighboring state

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Question
Our LLC is chartered in the state of Kansas. One of the multi-family properties we are strongly considering is on the Missouri side. We have been advised to place that property under its own LLC, for liability protection.
If we take acquisition, should we file the LLC Charter for that property under Missouri Charter or under Kansas Charter?
Our current LLC would be the holding company.
Thank you for your time.

Regards,

John Gallion


Answer
For investors choosing to use the dual entity strategy we generally advise establishing the LLC of the operating company in the state it operates and establishing a Nevada LLC that has elected corporate taxation for the holding company and make this Nevada LLC a completely private entity by hiring a nominee, you then place all your assets into the Nevada LLC. The Nevada LLC then leases to your operating company LLC. One of the main reasons we advise forming a Nevada LLC is Nevada has zero business taxes, zero franchise taxes and zero personal income taxes. All of this of course depends on the investors investment, legal and tax strategy. If you're expanding or planning to expand your portfolio, make sure your investment, legal and tax strategy are all consistent. At a minimum a consultation with an experienced real estate professional, CPA and board certified real estate attorney is advised. You may also want to consider a comprehensive investment feasibility analysis completed by an experienced real estate professional.

Buying or Selling a Home

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Own Realty Group

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Own Realty Group is a full service real estate brokerage representing buyers, sellers, tenants and investors of single family, and multi-family residential real estate.

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Own Realty Group real estate professionals have over 20 years experience buying, selling, leasing and investing in real estate. Own Realty Group is also the investment management company for the Houston Real Estate Investors Network. Own Realty Group professionals host weekly seminars and workshops on buying, selling, leasing and investing. Since 2002 Own Realty Group professionals have completed thousands of transactions representing buyers, sellers, tenants and investors.

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National Association of Realtors, Texas Association of Realtors, Houston Association of Realtors, Real Estate Investors Network, REI Connect

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Introduction to Commercial Real Estate, Real Estate Brokerage I, Real Estate Principles I & II, Avoiding Landmines in the Earnest Money Contract, Short Sales and Seller Financing, Generating Buyers by Marketing the New Stimulus Plan, What Realtors Should Know About Reverse Mortgages, Property Management I, Real Estate Marketing I, Marketing - Business Brokerage, Opportunities and Advantages of Residential Service Contract, Law of Agency, Law of Contracts, Inspections for Real Estate Agents, Understanding the Fundamentals of Loan Processing and Underwriting, Introduction to Real Estate Investing, Real Estate Investing Principles, Real Estate Investment Strategy, Investing in Real Estate with Lease Options, Investment Feasibility Analysis

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