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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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This is sandeep i am buying a commercial real estate in

Customer Question

Hi this is sandeep
i am buying a commercial real estate in florida. I live in NY. Intent is to hire local property managers to manage the property, and any income the property generates after the operating cost and loan cost are paid would become income for me. I want to form an llc for this property. Should I just it in Fl or better to have the llc in NY - what else do i need to consider. (today, i file FDA returns and NY returns for my normal w2 earnings and other dividend incomes). Pls advise where to form the llc ad what else need to be considered. (need to minimize any tax impacts)
Submitted: 2 months ago.
Category: Tax
Expert:  Barbara replied 2 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

It is usually best to form the LLC in the state where you are located. Because you are a resident of NY, you will pay tax on any income from the rental property in FL. FL does not have personal income tax.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Customer: replied 2 months ago.
why is it better to form llc in NY v florida? If i'll pay tax in NY independently of where the property is......what are the llc overhead in NY v florida.....i'm told it better to have Fl llc..pls clarify all the implications. The response you gave ...I already know that. I would like to understand why Florida v NY for the llc