I am a non US citizen looking to purchase property in US for investment. should i set up in Delaware or Nevada? Do I need to file taxes each year if I do set up?
You must set up where the property is located.
well, you don’t “must” domicile where the property is located, but it will probably be cheaper.
few lenders will loan on an out-of-state property unless the entity is registered in the state where the property is located. thus, all the supposed “benefits” of a Nevada LLC are eliminated.
If an LLC is registered in Nevada, but has is also registered to do business with another state (foreign filing and certificate of authority), wouldn’t that make a difference? Or does it still matter where it’s primary location is?
Steve,
NV laws only apply in NV. A NV LLC registered in a foreign state must follow the laws of that state. The only time a judge will consider NV laws or public policy for a NV LLC registered in a foreign state is to settle an internal dispute among LLC members. Creditors, tenants and vendors are not bound by NV law.
What if I plan on buying property in Nevada then California? Would it make sense to form the LLC in Nevada then get a permit to do business in California? I know I would still have to pay CA tax but it’s better to form in in NV until I am ready to pay the CA tax right?
Set up the LLC before you buy the NV property. When you are ready to do business in CA, you can register the NV LLC in CA or set up a CA LLC.