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From a paperwork perspective, the series LLC would be much easier to handle.
You will only have one LLC for which to file annual reports.
If you buy additional properties, you can simply put in the minutes to your meetings that you create additional series and add the series to the existing LLC without any further filing requirements
I have several clients that have TN Series LLCs and have rental property in Arkansas and Mississippi, which do not offer series LLCs
and it works out well - the other state still views it as one LLC, not multiple LLCs
The main LLC is the only one that needs to file with the additional state.
Nevada does does not have tax on the LLC, just an annual fee, and you would have AZ tax regardless of where the LLC was formed because you have AZ sourced income
A lot of people file their LLCs in Nevada from across the country because they are relatively inexpensive.
But, you will have annual fees due to each state, but the fees are less than if you had two separate LLCs
And you have the ease in adding additional properties later on
I'm a big fan of series LLCs
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