Land Trusts and Doing Business in a State - Posted by Todd

Posted by JT-IN on February 29, 2008 at 16:24:49:

Your IND LLC is doing business in IL.

Here is the point… It costs money to be in business. No, you shouldn’t waste any money on unnecessary expenditures but don’t skimp on some that are essential either. A Corp or Biz filing with a state you are doing biz in is an essential expenditure. Why, you ask…? If for any reason there was any litigation, your entity may not be recognized. What does that mean…>? That means that you have lost the protection of very biz structure that you have set up for your asset protection. Assets revert to shareholders and liabilities follow assets, so plain and simple you could personally be “at risk”, and all over 300 bucks.

That doesn’t sound like a sound biz move to me…

JT-IN

Land Trusts and Doing Business in a State - Posted by Todd

Posted by Todd on February 29, 2008 at 16:10:05:

I live in Illinois where it costs $500 to file articles of organization to form an LLC. The state of Indiana charges $90. If I form my LLCs in Indiana and then set up land trusts in Illinois appointing a trustee that lives in Illinois, and then assign the beneficial interest of the trusts to the Indiana LLC, is my Indiana doing business in Illinois? Since the beneficial interest is personal property much like stocks, my Indiana LLC should not have to file an authorization to do business in Illinois (where the fee is $300, I believe). Please advise.

You are doing business in IL - Posted by Rich-CA

Posted by Rich-CA on March 01, 2008 at 21:07:27:

The thing is, if you collect rents in a state, you are doing business there. Period.