out of state corporation and LLC

I am hearing that it is less expensive to have LLC’s registered in Nevada for individual properties and to set up my biz corporation in DE. Do i need to be concerned with ramifications on tax returns with out of state corps and LLC? How are other investors handling this?

The NV LLCs must be registered in each state where the properties are located and they are still subject to local law, not NV law, except in the case where you and the other LLC members disagree. I don’t see how it’s cheaper since you pay for two LLCs.

The DE corporation must be registered in each state where it does business and is subject to local law. There are benefits to incorporating in DE if you conduct business in multiple states, but it certainly isn’t cheaper than incorporating in your home state.

Tax reporting does get more complicated and you may need to secure different tax preparers for the state returns.

it’s less expensive IN NEVADA. it does nothing to reduce your tax liabilities to either IRS or the state where you are operating.

overall it’s more expensive, because you will also require Nevada state returns.

Spend more time investigating the state tax laws where the property will be located. once you establish nexus, some states (CA is the worst) tax EVERYTHING you make in any state.