A client who lives in Florida wants to form an LLC to buy a building in Kentucky. Should he file as an LLC in Kentucky or Florida? I haven't dealt with this situation before and I want to avoid any pitfalls on forming the LLC in the wrong state. Any help would be appreciated. Thanks
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Foriegn LLC
Each state has different protective rights within its Corporate/LLC formations. It has been said that Utah and Delaware are the best for Shareholder/Member protection.
When you incorporate under a state that you will not be operating in, you must register as a foreign entity in the state you will operate in. Doing this requires 2 annual filings for the same entity. Usually it is nothing more that paying a small fee to the state that formed your Corp/LLC.
Simplicity always seems to work for me, but other may differ.
Non-resident shareholders/members seem to have been put on a special list by more and more states lately and now require special withholding rules. Be sure to review Kentucky's non-resident laws.Last edited by BOB W; 05-12-2006, 08:58 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
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