LLC - Posted by Marriner Smith

Real Estate Investing Real Estate Law
1

Posted by Marriner Smith on December 08, 2005 at 11:12:47:

Hi Mike,

Thanks for your help.

Marriner Smith

2

LLC - Posted by Marriner Smith

Posted by Marriner Smith on December 05, 2005 at 09:47:14:

Hello,

I am thinking of buying rental property in Colorado. I live in Minnesota.

I would like to hold the title of the property in an LLC.

Question?

Does the LLC have to be registered in Colorado or can it be held by my current LLC registered in Minnesota?

Thank you,
Marriner Smith

3

Doing Business - Posted by John Merchant

Posted by John Merchant on December 08, 2005 at 23:11:54:

Most state’s corp. laws hold that a State A corp. which owns and rents in State B, IS doing business in state B…and therefore needs to register in State B.

Interestingly enough though is this fact: CCH, the big legal publisher who publishes a little book every year or so on “Doing Business”, cites no statutes or court decisions to the effect that a State A corp., which is merely owning a property in State B, is doing business in State B.

The states generally consider that mere property ownership, in absence of anything more, is NOT doing business and does not require registration.

4

Re: LLC - Posted by Mike (TN)

Posted by Mike (TN) on December 08, 2005 at 07:43:18:

You would need to check Colorado law on that point. I’m not a CO lawyer, but I am a TN lawyer. If you were buying real estate in TN and doing nothing more, you would generally not be considered to be doing business here and would generally not need to be registered (or qualified) to do business here. I do not know if the rule is the same in CO. Usually, their secretary of state’s website would have something to address this issue, as that is where you have to file to qualify. If you can’t find it, I’d suggest that you call them directly.