Factors to Consider When Vesting Under an LLC:



☑ Location of your LLC formation – should you form it in the state where the property is located or the state where you reside and file taxes?

☑ Foreign Entity Registration – certain states may require this for out-of-state LLCs.

☑ Additional tax costs – returns must be filed for each LLC, potentially increasing your tax expenses.

Foreign LLC Definition 

A Foreign LLC is an LLC created in one state (the "home state," where it is known as a Domestic LLC) that seeks to do business in another state. To legally operate outside its home state, the business must register as a Foreign LLC in each additional state where it plans to operate.

Foreign LLCs and “Doing Business”

As to whether or not you need to register your LLC as a Foreign LLC in another state comes down to whether or not you are legally “doing business” in that state. Each state has different laws when it comes to the definition of “doing business”, so if you’re not sure whether you need to register a Foreign LLC or not, we recommend reaching out to a few attorneys for a quick chat.