Where to form the LLC? - Posted by Wayne

Posted by Jimmy on December 14, 2007 at 07:23:24:

if the portfolio is in Florida, Florida should be the leading candidate. You need a powerful motivation to use an out-of-state LLC, because you add complication to your life, and extra tax filings and registrations.

In my law practice, we often established Nevada LP’s for our California clients, but we had a really good reason. It had to do with the valuation of the limited partner interests. NV law vested Limited Partners with minimal rights and powers, which fit our objectives perfectly. NV law also gave would-be creditors limited remedies against an LP, which also fit the objectives. TX, SD, AK, DE and other states were also considered to be friendly to our obectives. I can’t remember how FL panned out.

and one more thing: NEVER take generic tax/legal advice from gurus and “experts.” Get specific advice from an experienced Florida buiness/tax attorney. You may learn that an LLC is NOT the best vehicle.

Where to form the LLC? - Posted by Wayne

Posted by Wayne on December 11, 2007 at 07:55:39:

My scenario…

I have a (soon to be) business partner in California, who owns a California LLC.

I live in Virginia, but do most of my business in Maryland, and own a Maryland LLC.

She and I are considering partnering up to buy a fantastic rental portfolio in Florida…

So, I guess my question is which state would it make the most sense to form the LLC in? One of these three, or another (Nevada, etc)? Why?

Thanks in advance.
Wayne

Re: Where to form the LLC? - Posted by Rich-CA

Posted by Rich-CA on December 23, 2007 at 14:12:44:

You should form it in FL as you would have to pay to do business in FL for an LLC from anywhere else and would be paying twice (state of formation and FL) for the privilege.