Last updated October 12, 2020
Do I need to register my real estate LLC in my home state?
“In your best state to form an LLC article, you mentioned that for real estate investments, it makes more sense to register your LLC in the state where your investment property is located in. However, won’t you still need to register your LLC as a Foreign LLC in your home state? If so, how is a real estate investment related LLC different from any other LLC where you say registering at your local state is cheaper? Thank you.”
Unless you’re in California, most people don’t need to register their LLC as a foreign LLC in their local state, aka, their home state.
You’ll just form a domestic LLC in the state where the property is located.
It comes down to where you’re “doing business”. For real estate LLCs, the state where they are doing business is that state where the property is located.
The exception to the rule is California, where they have extremely strict rules about the definition of “doing business”. If you reside in California, you can form an LLC in California and register it as a foreign LLC in the property state, form an LLC in the property state and register it as a foreign LLC in California, or form an LLC in California (domestic) and an LLC in the property state (also domestic), however the California LLC owns the property state LLC.
And for those who are reading who want to buy real estate in their home state, then you don’t have to worry about all this. It’s just one LLC formed in your home state.