What’s the Best State to Start an LLC
in 2025?
- By
Ahmad Adil - updatedJuly 13, 2025
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As an entrepreneur or small business owner, you’re constantly seeking the smartest strategies to build a strong foundation for your venture. One of the most common questions that arise when setting up a Limited Liability Company (LLC) is, “Which is the best state to start an LLC?” You’ve likely heard various claims – from the allure of Delaware for corporations to the privacy benefits touted by Nevada and Wyoming. But what’s the real story behind these claims, and what truly is the best state for LLC formation for your business?
Let’s cut through the noise and get to the truth. For the vast majority of aspiring and current business owners, the simplest, most cost-effective, and ultimately best state to register LLC is overwhelmingly your home state. While popular myths suggest otherwise, forming an LLC outside of where you actually live and conduct business can lead to unnecessary complications, double fees, and significant headaches down the line.
In this comprehensive guide, we’ll expose the misconceptions, explain the crucial difference between a domestic LLC vs foreign LLC, highlight potential pitfalls, and provide clear, actionable advice to help you make the most informed decision for your business’s future. By the end, you’ll understand why your home state is typically the champion for your LLC.
Key Takeaways for Busy Entrepreneurs:
Your Home State is King: For most businesses, especially those operating from a physical location or home office, forming your LLC in your state of residence is the most straightforward and cost-efficient option.
Beware of Double Registration: Forming an LLC in one state and operating in another almost always requires you to register as a Foreign LLC in your operating state, effectively doubling your costs and compliance burden.
Taxes Follow the Money: You pay taxes where your business generates revenue, not where your LLC is merely registered. “Tax-free” states don’t offer a loophole if you’re doing business elsewhere.
Exceptions Exist: While rare for most, certain situations like real estate investments in other states or non-U.S. residency can justify forming an LLC outside your home state.
Domestic LLC vs. Foreign LLC: Understanding the Crucial Difference
This distinction is perhaps the most critical concept to grasp when deciding the best state to start an LLC. Many of the perceived benefits of forming an LLC in a “popular” state disappear when you understand these definitions.
A. What is a Domestic LLC?
A Domestic LLC is simply an LLC that is formed in the state where its primary business operations are conducted and where the owners reside. For example, if you live in Texas and run your online consulting business from your home in Texas, an LLC formed in Texas would be a Domestic LLC. It’s “domestic” to its home state.
B. What is a Foreign LLC?
If you choose to form your LLC in a state other than your home state – say, you live in Florida but form your LLC in Wyoming – and then you conduct business in your home state (Florida), your Wyoming LLC would be considered a Foreign LLC in Florida. Most states require any LLC that is “transacting business” within their borders, but was formed elsewhere, to register as a Foreign LLC. This means filing additional paperwork and paying fees in the state where you’re operating, in addition to the state where you originally formed the LLC.
C. The Double Whammy: Why Forming Out-of-State Usually Costs More
This is where the supposed “advantages” of those “magical” states quickly unravel for the average small business owner. Let’s say you’re a New York resident but were convinced to form your LLC in Nevada because you heard about its “no corporate income tax.” Here’s what often happens:
Two LLC Filings, Double the Fees
You will first pay the initial filing fee to form your LLC in Nevada. Then, because you are actually doing business in New York, you’ll also have to pay a separate filing fee to register your Nevada LLC as a Foreign LLC in New York. That’s two filing fees instead of just one!
Registered Agent Requirements in Multiple States
You’ll need a Registered Agent with a physical address in Nevada for your initial LLC filing. Then, when you register as a Foreign LLC in New York, you’ll also need a Registered Agent with a physical address in New York. If you use a professional service, that means paying two separate annual Registered Agent fees.
Dual Annual Reports: An Ongoing Burden
Most states require an annual (or biennial) report and associated fee to keep your LLC in good standing. If you have a Nevada LLC and it’s registered as a Foreign LLC in New York, you will likely owe an annual report fee in both Nevada and New York. This leads to continuous, unnecessary costs year after year.
This scenario can easily add up to DOUBLE the cost and DOUBLE the headaches because you have to maintain two separate LLC filings with two different state governments, each with its own set of rules, deadlines, and fees. This significantly undermines the idea of a cheapest state to register LLC.
💡 Tip: Always consider both initial and ongoing fees. A state with a low initial fee might have high annual report fees or other hidden costs, especially if you end up filing as a Foreign LLC in your home state.
The Hidden Dangers: State Fines and Penalties
Beyond the doubled costs, failing to properly register your out-of-state LLC as a Foreign LLC in your home state can lead to severe legal and financial repercussions. State governments are serious about businesses operating legally within their borders.
Why States Enforce Foreign LLC Registration
States enforce these rules to ensure that all businesses operating within their jurisdiction are properly registered, accountable, and paying their fair share of taxes. It’s about maintaining order, protecting consumers, and ensuring compliance. When an out-of-state LLC “transacts business” in a state without registering, it’s essentially operating illegally.
Examples of Real-World Consequences and Fines
Every state has laws that spell out the consequences for an LLC illegally transacting business without proper registration. These can include:
Fines and Penalties: Ranging from hundreds to thousands of dollars per year of non-compliance.
Interest: Charges on unpaid taxes and fees.
Court Costs: If the state decides to pursue legal action.
Loss of Ability to Transact Business: Your LLC’s operations could be put on hold or even completely shut down by an injunction.
Inability to Sue: An unregistered foreign LLC often loses its right to sue other parties in that state’s courts.
Personal Liability: In some cases, the owners might lose their limited liability protection, making their personal assets vulnerable.
Case Study: Connecticut’s Strict Enforcement
Consider the example of the Connecticut Secretary of State, working with the Attorney General. They have collected millions of dollars from companies found to be illegally doing business in Connecticut without registering as foreign entities. While some fines were modest, the average fine was a significant $4,600, with some reaching over $30,000!
Specifically, Section 34-275a of the Connecticut LLC Act outlines severe penalties for out-of-state LLCs that conduct business in Connecticut but fail to register within 90 days:
A penalty of $300 per month is imposed.
The LLC owes income taxes and fees for all years it failed to register, plus interest and penalties on those unpaid taxes.
The Attorney General can sue your LLC to recover all amounts due and even issue an injunction preventing your LLC from doing any more business in the state.
Your LLC will be unable to sue another party in Connecticut courts until all penalties and fees are paid and the LLC properly registers.
⚠️ Note: While it might seem manageable to register as a foreign LLC in multiple states, for most small business owners, the added burden of multiple filing fees, annual reports, and registered agent fees simply isn’t worth the hassle or cost. The goal is to find the best state to start an LLC that simplifies your life, not complicates it.
Debunking the Tax Myth: Taxes Are Paid Where Money Is Made
One of the most persistent and misleading claims that steers entrepreneurs away from forming in their home state is the promise of “tax savings” by forming an LLC in a state with no corporate income tax. Let’s be crystal clear: This is simply not true for the vast majority of businesses.
The Truth About State Income Taxes and LLC Location
If you form an LLC in Nevada (which has no state corporate income tax) but you live and operate your business in California (which does have state income tax), you will still need to pay taxes in California. Why? Because California is where your business is transacting business and making money.
A helpful saying to remember is: “Taxes are paid where money is made.”
Your LLC, even if it’s a Foreign LLC registered out-of-state, will generally need to pay taxes in the state where it is operating and generating revenue. The state where your LLC is merely registered does not determine your tax obligations if your business activities are primarily elsewhere.
Avoiding Double Taxation and Unnecessary Fees
Even worse, by forming in a state like Nevada and operating elsewhere, you might still owe taxes or fees in Nevada (such as annual fees or business license fees), while simultaneously being subject to all the taxes and fees in your home operating state. This is not a tax-saving strategy; it’s a double-taxation trap!
The states that promote themselves as tax-friendly often do so to attract businesses to incorporate within their borders, generating revenue from filing fees and annual reports. This revenue helps their state, but it doesn’t automatically mean a tax break for your business if you’re not actually operating there. For a truly cheapest state to form an LLC, you must consider where your economic activity actually occurs.
Unpacking the “Hyped-Up” States: Delaware, Nevada, and Wyoming
You’ve undoubtedly come across articles or ads extolling the virtues of forming an LLC in Nevada, Wyoming, or Delaware. While these states do offer certain benefits, they are almost universally misrepresented for the average small business owner.
A. Nevada: High Hype, Questionable Benefits for Most
Nevada often boasts of its “no corporate income tax” and pro-business environment. However, as we’ve explained, if your business isn’t physically operating in Nevada, these tax benefits don’t apply to your operations in your home state.
Financial Gains for the State and Promoters
The “hype” around Nevada (and other such states) is often fueled by the financial interests of the state itself and companies that profit from forming LLCs there. If Nevada forms, say, 40,000 LLCs annually, that generates millions in revenue just from filing fees and ongoing annual fees for the state. Then, add the tens of millions made by companies that promote Nevada as the “go-to” state. This creates a powerful incentive to perpetuate the myth.
High Fraud Activity and Low Actual LLC Formations
Interestingly, despite the extensive hype, Nevada actually forms far fewer LLCs annually compared to many other states that receive less attention. Furthermore, unfortunately, Nevada has faced criticism for a relatively higher incidence of fraudulent activity associated with businesses formed there. While this doesn’t impact all businesses, it’s something to be aware of.
If you genuinely live in Nevada and your business operates there, forming an LLC in Nevada is perfectly logical. But if you don’t reside or conduct substantial business in Nevada, it’s almost always a better idea to form your LLC in your home state.
B. Wyoming: The Popular (But Often Misunderstood) Choice
Wyoming is another state frequently highlighted for its privacy features (no public record of LLC members) and low annual fees. While Wyoming does offer strong asset protection laws and business-friendly regulations, similar to Nevada, the disadvantages of forming your LLC outside your home state usually outweigh these perceived benefits for most entrepreneurs.
Why It’s Still Usually Not the Best State to Register LLC from Outside
If you form a Wyoming LLC but operate your business from, say, North Carolina, you’ll still be required to register your Wyoming LLC as a Foreign LLC in North Carolina. This means:
Paying two initial filing fees.
Paying two annual report fees.
Potentially needing two Registered Agents.
Dealing with two sets of state compliance requirements.
The Long-Term Costs Outweigh Perceived Advantages
The initial savings or privacy benefits of a Wyoming LLC quickly diminish once you account for the dual registration requirements and ongoing costs. In the long run, it will cost you more time, money, and administrative hassle. For the average small business owner, forming your LLC where you live and primarily operate remains the best state to start an LLC for simplicity and genuine cost-effectiveness.
C. Delaware: Ideal for Corporations, Not Always for LLCs
Delaware is a powerhouse in the corporate world, with over half of all U.S. publicly traded corporations and 60% of Fortune 500 companies incorporated there. This impressive statistic often leads people to assume it’s the best state for LLC formation too. However, there’s a crucial distinction: these statistics overwhelmingly refer to corporations and the act of incorporating, not forming LLCs.
The Truth About Delaware’s Corporate Dominance
Delaware’s legal system (specifically the Court of Chancery) is highly specialized in corporate law, making it ideal for large, publicly traded companies, those with complex investor structures, or businesses looking to raise significant venture capital. These types of entities benefit from Delaware’s well-established corporate case law and flexible corporate statutes.
Why Delaware LLCs Are Different for Small Businesses
For a typical small business or individual entrepreneur forming an LLC, Delaware’s corporate advantages rarely apply. If you form an LLC in Delaware but do not live or transact business there, you will still need to:
Register your Delaware LLC as a Foreign LLC in your home state.
Pay annual Registered Agent fees in Delaware (and potentially in your home state).
Pay annual franchise tax (a high $300 fee for LLCs) in Delaware, in addition to any annual report fees in your home state.
Dual Registration and Fees Still Apply
Unless you genuinely live in Delaware or your LLC is transacting significant business within the state, forming your LLC there will lead to the same double costs and administrative burdens discussed earlier. For most small businesses, the perceived prestige of a Delaware LLC is not worth the extra expense and complexity.
Understanding “Doing Business”: Where is Your LLC Really Operating?
One of the biggest sources of confusion for entrepreneurs is the legal definition of “doing business.” Many incorrectly believe it’s based on where their customers are or that an “online business” has no physical location. This misunderstanding is key to choosing the best state to start an LLC.
A. Your Home State: The Primary Connection Point
Regardless of where you form your LLC, your business is legally “transacting business” in the state(s) where you are primarily running and operating it from.
The Legal Definition of “Transacting Business”
“Transacting business” doesn’t primarily refer to where your customers are located. Instead, it focuses on your operational hub:
Where your office (even if it’s a home office) is located.
Where your employees are based.
Where you hold business meetings.
Where you make strategic decisions.
Where you hold inventory (if applicable).
Where you routinely offer goods or services.
If these activities primarily occur in your home state, then your LLC is transacting business there.
Beyond Customers: Focus on Operational Hub
It’s a common misconception that if your customers are spread across the country or the world (e.g., for an e-commerce business), you need to register in all those states. This is generally not true. Your customers’ locations do not define where your LLC is “doing business” for registration purposes. Your physical presence and operational activity do.
B. Online Businesses: The Home State Rule Still Applies
“My business is 100% online. Where should I form an LLC?” This is a very frequent question. The answer is still your home state.
Debunking the “Location-Independent” Myth
Just because your business is online doesn’t mean it exists in a legal vacuum. You, the business owner, are physically located somewhere – likely your home, a coffee shop, or a co-working space. That physical location is where you are legally running your business. You cannot “get around” state corporate and tax laws by simply being online.
Key Indicators of Your Business’s “Home”
Even if you travel often or run a location-independent business, you’ll still have a primary state of connection. This is most likely:
Your state of residency.
Where you have your driver’s license.
Where you pay state taxes.
Where you most frequently return to after travel.
Where your bank accounts are primarily located.
C. Multi-State Customer Bases: No Need for Multiple Registrations (Usually)
Having customers or clients in multiple states does not automatically mean you need to register your LLC as a Foreign LLC in each of those states. This is a common and costly misunderstanding. The trigger for Foreign LLC registration is typically having a physical presence or systematically conducting business operations in a state, not just selling to customers there.
D. Real-World Issues: The Seller’s Permit Dilemma
Many entrepreneurs face unexpected headaches because they formed their LLC in the “wrong” state. A frequent example involves Seller’s Permits.
A Costly Mistake: The Utah/California Example
Consider a reader who lives in California but was advised to form his LLC in Utah. He later realized he needed a Seller’s Permit (also known as a Reseller’s Permit or Resale Certificate) for wholesale purchases in California. To get this permit, his Utah LLC had to be registered as a Foreign LLC in California.
This mistake led to a frustrating and expensive situation:
He now had to register his Utah LLC as a Foreign LLC in California (paying California’s foreign LLC filing fee and ongoing fees).
Alternatively, he could dissolve the Utah LLC and form a new California LLC (doubling initial costs and wasting time).
Or, he could attempt to “Re-domicile” (convert) his Utah LLC to California, a complex process that isn’t always available or straightforward.
Avoiding Complications with State Revenue Departments
Similar issues arise if your LLC needs to register with your state’s Department of Revenue (e.g., for sales tax registration) but your LLC was formed in a different state. These departments will require your business to be properly registered in their state before issuing necessary permits or tax IDs. This highlights why the best state to start an LLC is one that aligns with your day-to-day operations.
The Clear Recommendation: Form Your LLC in Your Home State
Given all the complexities, doubled costs, and potential legal issues, the resounding answer for the best state to start an LLC for the vast majority of small business owners and entrepreneurs is: your home state.
The Easiest, Least Expensive, and Best Long-Term Strategy
Forming your LLC in the state where you live and primarily run your business offers numerous advantages:
Simplest Compliance: You only deal with one set of state laws, forms, and deadlines.
Cost-Effective: You avoid duplicate filing fees, annual report fees, and Registered Agent fees. This is truly the cheapest state to form an LLC in the long run.
Reduced Risk of Penalties: You ensure compliance with state registration laws, avoiding hefty fines and legal issues.
Streamlined Operations: Banking, local permits, and state tax filings become much more straightforward.
The truth is, most people are already running their business (even an online one) from their home state. This is where your physical presence, administrative activities, and primary decision-making occur. This is where your LLC is “transacting business.”
Expert Opinions: Why Simplicity is Key
Even seasoned legal and business formation experts agree. Attorneys like Alexander J. Davie and Dana Shultz consistently advise that for most small businesses, the “magical” states are largely overhyped, and the best state for LLC formation is your home state. As our friends at Northwest Registered Agent aptly put it:
“We get a lot of people these days coming up with some pretty goofy ideas. We always try to send them in the right direction before they go off and set up their 5-LLC-asset-protection-strategy to protect their new taco stand idea.”
If your primary base of operations is your home or other locations within your home state, then that’s unequivocally where you should form your LLC.
How to Determine Your “Home State” (Comprehensive Checklist)
Sometimes, if you travel frequently or have moved recently, your “home state” might not feel obvious. Here’s a comprehensive checklist of questions to help you determine where your primary connection lies – the state where a court or tax auditor would likely determine you are a resident and transacting business:
What state are you a resident of?
Where do you pay rent or own homes?
Where is your primary bank account?
Where is your driver’s license issued?
Where do you file your state income tax return?
In what state are your other professional licenses/permits held?
Where are you registered to vote?
What states were you in for more than 183 days this year?
Where are your primary healthcare providers (doctor, dentist, health insurance)?
Where do your children attend school?
Where is your main office, even if it’s a home office?
Where are your cars registered and insured?
Where are your pets and veterinarian located?
Where do you receive most of your mail and financial statements?
From where do your social media posts often originate (geotagging)?
Where are most of your toll records?
Where do the calls/texts on your cell phone primarily originate?
Where do you most frequently return to after traveling?
Where are your immediate family members living?
While not every item on this list directly means your LLC is “transacting business” in that state, collectively, they paint a clear picture of your personal and professional nexus. If you were ever audited for personal income taxes, the state that successfully claims you as a resident is almost certainly the state where your LLC should be formed and where it’s considered to be transacting business.
Key Exceptions: When It Makes Sense to Look Beyond Your Home State
While the “form in your home state” rule applies to the vast majority of small businesses, there are four notable exceptions where forming an LLC outside your home state might be the best state to start an LLC for specific reasons.
A. California Residents: The Unique California Landscape
If you live in California, you’ll almost certainly be transacting business there due to the state’s broad definition of “doing business.” This means you will need to either:
Form your LLC directly in California, or
If you form an LLC in another state, you will be required to register that out-of-state LLC as a Foreign LLC in California.
California has unique annual fees and compliance requirements, which often make forming directly in California the most straightforward path if you are a resident.
B. Non-U.S. Citizens and Non-U.S. Residents:
It’s important to note first that there are no citizenship or residency requirements to form an LLC in any U.S. state. Non-U.S. residents can absolutely form LLCs in the USA, and many do! The best state to start an LLC for them depends on their operational presence.
Physical Presence in the USA: If you are a non-U.S. citizen/resident but your business will have a physical office, employees, or a significant physical presence in a specific U.S. state, then you should form your LLC in that state. This is where the LLC will be transacting business.
No Physical Presence in the USA: If your business will have no physical presence in the USA (e.g., you run an online business from outside the U.S. with no U.S. employees or offices), then you have the flexibility to choose almost any state. States like Wyoming or Delaware are often popular choices in this scenario due to their business-friendly laws or privacy features. However, understanding U.S. tax implications is paramount.
⚠️ Note: U.S. taxation for non-U.S. residents is complex and depends entirely on how your business makes money. There isn’t a simple “best state for lowest taxes” answer. You must consult with an accountant specializing in non-resident alien taxation and familiar with the 60+ U.S. tax treaties.
Additionally, for foreign-owned LLCs:
Obtaining an EIN and opening a U.S. bank account have different procedures.
Foreign-owned Single-Member LLCs have an additional filing requirement with the IRS (Form 5472), even if they have no U.S. income.
You’ll find these articles helpful if you’re a non-U.S. resident:
How to get an EIN for LLC without an SSN
How a non-US resident can open an LLC bank account
Form 5472 and foreign-owned Single-Member LLC
C. Real Estate LLCs: Location, Location, Location!
Unlike typical operating businesses, the rule for real estate investments is different.
Forming Where the Property is Located: If you are investing in real estate located in a state other than where you live, it is almost always best to form your LLC in that state where the property is located. Your LLC is considered “doing business” in the state where the real estate activity occurs – whether it’s generating rental income, buying and selling properties, or wholesaling.
Avoiding Foreign LLC Registration for Investment Properties: If you were to purchase an out-of-state property with an LLC formed in your home state, you would face the same “Foreign LLC” registration issue. You’d have to register your domestic LLC as a Foreign LLC in the state where the property is, leading to double filing fees, double annual fees, and the need for a Registered Agent in both states.
In summary, for real estate LLCs, the best state to start an LLC is the state where your investment property is physically located, as that is precisely where your LLC is transacting business.
D. Wyoming Holding Company Strategy (for Multi-State Real Estate)
For very active real estate investors who purchase numerous properties across multiple states, a specialized strategy involving a Wyoming LLC holding company is sometimes utilized.
Understanding the Parent-Child LLC Structure: In this setup, a Wyoming LLC acts as a “parent” holding company, which then owns individual “child” LLCs formed in each state where a property is located. For example, a Wyoming parent LLC might own a California LLC (for a property in California) and a Florida LLC (for a property in Florida).
When to Consult an Attorney/Accountant: This advanced strategy is complex and typically requires significant assets to justify the multiple LLCs and ongoing compliance. If you’re considering a holding company structure, it is absolutely essential to speak with an experienced attorney or accountant specializing in multi-state real estate investments and asset protection. This is not a DIY strategy for the average investor.
Conclusion: Make an Informed Decision for Your LLC’s Future
Choosing the best state to start an LLC is a foundational decision for your business. For most entrepreneurs and small business owners, the answer is clear: form your LLC in your home state, where you live and primarily conduct your business operations. This approach is the most straightforward, the least expensive in the long run, and ensures seamless compliance with state laws.
Don’t fall for the hype surrounding “magical” states for LLC formation. Unless your situation falls into one of the specific exceptions (California residency, non-U.S. residency with no U.S. physical presence, or real estate investments in other states), forming your LLC elsewhere will only add unnecessary costs, administrative burdens, and potential legal headaches.
By making an informed decision based on where your business truly operates, you can set your LLC up for long-term success, peace of mind, and financial efficiency. Protect your assets smartly and build your business on a solid legal foundation!
❓FAQs: Best State to Start an LLC
1. Is Delaware truly the best state to form an LLC for most small businesses?
No, not for most small businesses or individual entrepreneurs. While Delaware is highly popular for large corporations (publicly traded, venture-backed), its benefits for these entities (specialized corporate law, Court of Chancery) rarely apply to small LLCs. If you don’t live or primarily do business in Delaware, forming an LLC there will typically require you to register as a Foreign LLC in your home state, leading to double filing fees, double annual fees (including Delaware’s high $300 annual franchise tax), and increased administrative burden. Your home state is generally the best state to start an LLC.
2. Can I form an LLC in a "no income tax" state like Nevada or Wyoming to avoid paying state income taxes in my home state?
This is a common misconception. You cannot avoid paying state income taxes in your home state by simply forming your LLC in a state like Nevada or Wyoming that has no state income tax. Taxes are paid where money is made. If you live and operate your business in a state that has income tax, your LLC’s profits will still be subject to your home state’s taxes, regardless of where the LLC was formed. In fact, forming out-of-state can lead to double compliance costs (filing fees, annual reports) without any tax benefit, thus negating the idea of the cheapest state to form an LLC.
3. What is the difference between a domestic LLC vs foreign LLC?
A Domestic LLC is an LLC formed in the state where the business owner resides and primarily conducts business operations. A Foreign LLC is an LLC that was originally formed in one state (the “domestic” state) but is then registered to conduct business in a different state. If you form your LLC out-of-state but operate in your home state, you will likely need to register your out-of-state LLC as a Foreign LLC in your home state, which typically involves paying fees and complying with regulations in both states.
4. My business is entirely online. Does this change the best state to start an LLC for me?
For most online businesses, the answer is still to form your LLC in your home state. Even if your customers are worldwide, your business activities – where you physically work, make decisions, and manage operations – occur from a specific location, likely your home. That physical location determines where your business is “transacting business” for legal and tax purposes. You cannot avoid state laws or taxes by simply being an “online” business.
5. When would it actually make sense to form my LLC outside my home state?
There are a few specific exceptions:
California Residents: Due to California’s unique laws, you’ll likely need to form directly in CA or register as a Foreign LLC if formed elsewhere.
Non-U.S. Residents with No U.S. Physical Presence: If you are a non-U.S. citizen/resident and your business has no physical operations or employees within the U.S., you have more flexibility in choosing a state like Wyoming or Delaware. (Always consult a tax advisor for U.S. tax implications).
Real Estate LLCs: If you own or invest in physical real estate located in a state different from where you live, it is generally best to form your LLC in the state where the property is located to avoid Foreign LLC registration for that specific asset.
Wyoming Holding Companies: For sophisticated multi-state real estate investors, a Wyoming holding company structure might be used, but this is an advanced strategy that requires legal and tax counsel.
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