Can an out-of-state LLC own property in another state?
Yes, an LLC in one state can own property in another, generally speaking.
This is very common in real estate investing and holding property.
For example, for properties that aren’t earning rental income, I personally use Ohio LLCs to hold real estate (in states other than Ohio).
(Why? Ohio is a “sleeper state”. Super affordable, very easy paperwork, LLCs in Ohio are private, and there is no Annual Report.)
However, there are a few things to be aware of.
Do I need to register the LLC as a “Foreign LLC”?
A Foreign LLC is simply an LLC formed in one state that “transacts business” in another state.
For example: An LLC formed in Ohio is a “Domestic” LLC in Ohio. But if that Ohio LLC “transacts business” in Florida, it’s known as a “Foreign” LLC in Florida. And likewise, it’d also be known as a “Foreign” LLC in any/all other states where it “transacts business”.
However:
- the laws that define “transacting business” can be vague
- not all states strictly enforce the need to foreign quality (register as a Foreign LLC)
- the penalties for failure to foreign file may not be that bad in your state
- and if the LLC isn’t “transacting business” then
How do I know if my LLC is “transacting business”?
For real estate LLCs, the easiest way to determine this is whether or not the LLC is earning income in that state.
Said another way, is the property rented out and collecting money from tenants?
If so, then all states will consider the LLC “transacting business” and they’ll want the LLC registered as a Foreign LLC.
However, if the LLC isn’t earning income (for example, the property is sitting vacant, you/family live in it, it’s a personal vacation rental, etc.) then you don’t have to foreign-qualify the LLC.
What about the lender?
If you aren’t using financing, then this won’t be an issue.
However, if you’re working with a bank or lender, check with them ahead of time to see if they care about out-of-state LLCs owning property.
What if the title company creates a fuss?
If you aren’t using financing, and the title company is creating a fuss, honestly, I’d find another title company.
Out-of-state LLCs owning property is extremely common (and legal), so if a title company is creating an issue for you,, I’d move onto the next.
Can an LLC own another LLC in another state?
Yes, an LLC can own an LLC in another state.
For example, let’s say you have a Wyoming LLC. That Wyoming LLC could own an LLC in Ohio. And that Ohio LLC could own property in Ohio (or in any state).
This is common among real estate investors with multiple properties.
Summary
In summary, an LLC in one state can own property in another, however, you should:
- determine whether or not it’ll be “transacting business” (in the state where the property is located)
- the lender cares
- the title company cares

Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
Is it legal for an out of state LLC to advertise themselves locally owned while facilitating trusteeship of a land contract that has the beneficiary sign a CONTRACT FOR INSTALLMENT SALE OF BENEFICIAL INTEREST IN LAND TRUST provided by a seperate PMG. But still advertising themselves as selling property.
Question: I live in California, but have a second home in Lake Havasu, Arizona. We just aquired an investment rental (also in Lake Havasu). I want to form an LLC in Arizona (for asset protection purposes). Can I form an Arizona LLC, so I do not have to pay the steep California LLC fee’s ($800/yr) for my rental and use my second home address as the mailing/contact address?
We are selling our house in Alabama to an LLC company in Florida. They want people to see our home before we close the deal with them. Is it legal for an out-of-state company to purchase a house in another state and do we have to show our home to potential buyers as they attempt to sell our home?
Hi Michael, while yes, it’s common for an out-of-state LLC to take title to a house in Alabama, what it sounds like here is that you are dealing with a real estate wholesaler. Meaning, after you sign a Purchase Agreement with them, they actively find the “end buyer” and they assign (transfer) the rights of the contract to them for a fee. That’s how the wholesaler makes their money. And the end buyer makes out (typically) because they are getting a discount from market rate. If you use a reputable title company, there shouldn’t be any issues. However, it’s also good to know who you’re doing business with and what’s occurring.