Lending Map

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Things to Consider if Vesting Under an LLC

☑ Where you form your LLC – in the state where the property is located vs the state you reside / file taxes.

☑ Some states may require a Foreign Entity Registration for our of State LLC's.

☑ Increased tax expense – returns required to be filed for each LLC

Foreign LLC Definition

A Foreign LLC is simply an LLC that was formed in one state (it’s “home state”, where the LLC is known as a Domestic LLC) that is registering to do business in a new state. When a business expands to operate out of, and do business in multiple states, it must register (or “qualify”) as a Foreign LLC in each new state where it wishes 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.