Legal Question in Real Estate Law in Pennsylvania

I am in PA and plan to have multiple LLC's as I buy real estate investment properties in another state...do I need to open the LLC's in the other state or in PA?

Thanks.


Asked on 2/03/13, 5:25 pm

2 Answers from Attorneys

Thomas Kenny Thomas D. Kenny, Esquire

Either way is acceptable as long you have a filing of notification to the other state. It's really a question of which state law is more business friendly and what the courts are like. What federal district court are you in? Does your operations agreement have an arb clause and so on. More questions at [email protected]

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Answered on 2/03/13, 5:55 pm
Sharmil McKee McKee Law Office

If you purchase a property in your LLC's name you will also need to register that business in the state where your property is located. This may be called a 'foreign business registration'. You should also keep in mind, that the law of the state where your property is located will govern most of your property disputes. For example, even though you are a Pa business, Florida law will govern your landlord-tenant lease in Florida. And finally, if you purchase property in another state, you must file taxes in that state, in addition to Pa state taxes. You should consider talking to a business or tax attorney about your plans so that you can conduct conduct some tax planning to avoid paying more than your fair share of taxes.

Good luck with your venture..

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Answered on 2/03/13, 6:27 pm


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