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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 53721
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I have a property in Norfolk, VA, of which Im about to rent

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I have a property in Norfolk, VA, of which I'm about to rent out (first time renter), via a property manager. Question: Would it be in my best interest to form an LLC considering the advantages of one? Other information: I'm living overseas, but plan on returning to Atlanta to setup camp. I hope to either acquire more rental properties there or buy a starter franchise. Should each property be setup in a different LLC, if that's the way to go? Also, how would I go about decided which state to form the LLC in? Thanks much!
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. To avoid liability and the risk of double taxation, you are best served by forming an LLC for your rental property. If you are going to own multiple properties, to avoid a problem with one property contaminating the other properties, it's best to have each property in its own LLC. If you are the sole owner, you can treat each LLC as a disregarded entity which means you don't have to file a separate tax return for each, but rather can report the activities on your individual tax return. Because operating a rental property is going to be subject to tax in the state in which each property is located, you might as well form each LLC in the state in which the property is located...that way you avoid forming in one state and having to then register as a foreign entity in the state in which the property is located.

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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is:

Thank you also for the generous bonus! I appreciate your kindness!

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