My wife and I own an apartment in New Jersey and we would like to rent it out via LLC structure to limit liability. Do we have to form the LLC in NJ, or we can form an LLC in DE, NV or WY? What are the advantages for the out-of-state LLC formation v. NJ since all of the profits are pass-through, anyway?
Technically you could register the LLC anywhere, but this way or another it has to be also registered in New Jersey (its called Foreign Qualification, or just forming a Foreign Entity).
You can read a previous question about owning real estate in California with a Wyoming LLC to get a better idea. Also, there was a good question about which cases would require you to register a Foreign Entity and which wouldn’t.
As such, for the purpose of renting a property, it might just make sense to register in the state where this property is located.
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