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    1 Reply Latest reply on Nov 30, 2010 12:57 AM by SmallBiZ.com

    LLC's in Different States

    gort9999 Newbie
      Hi, I would appreciate your help on this. I have rental property both in Michigan and in Florida. I would like to do business as an LLC. Can I operate a business with one only 'one' LLC in Florida, as that is my home state? Or, do I need to have at least 2 LLC's, one in Michigan and one in Florida to operate as a landlord where I collect rent from my tenants?

      Your advice would be most helpful. Thank you.
        • Re: LLC's in Different States
          Newbie

          Keep in mind that an LLC, formed in any state, is a separate legal person, which has many of the same legal rights that you do. Thinking from this perspective, consider that you can certainly own as many properties in any state that you want. An LLC that you create, own, and manage can likewise own properties in any state, regardless of where the LLC is chartered. That said, there is one specific benefit to owning/managing each property in a different LLC: This limits the liability of each LLC to the property it owns. So if the LLC has liability issue with one property, it wont affect the asset of the other LLC.

          As far as the formation state, consider the cost of formation and the cost of maintaining the charter each year. You can research the annual filing costs and requirements of each state here: http://www.smallbiz.com/static/incorporator/state_requirements.cfm