Best state for registering a real estate investment company

[Jeff Witherite]

I am currently a resident of Ohio, but my business partner and I spend quite a bit of time in the Carolinas.  We have separately been involved in investment real estate for several years, and we are now planning to start a new business together with intent to invest in long-term multi-unit rental properties in the Carolinas.  I am interested to receive feedback as to the best state for registering our business at the top-of-house level.  We both live in Ohio, but I think there are probably tax and legal benefits to registering in another state, such as Wyoming.  I would appreciate feedback from forum participants as to which state is considered the best and why.  Thank you.

[Katie Smith]

Hi Jeff! Keep in mind that if you register your company in a different state than you are doing business in, you most likely will need to register as a "foreign entity" in the state you are doing business in. For example, if you formed your business in Ohio, but intend to purchase a property in SC, you will need to register said business in SC. This process can take 2-3 weeks depending on the state. You can also think about creating a new company for each deal that you do, to keep all assets separate. I'd find a lender that can do deals with brand new companies and do not require seasoning, if you choose to go that route. 

[Jimmy Lieu]

Quote from @Jeff Witherite:

I am currently a resident of Ohio, but my business partner and I spend quite a bit of time in the Carolinas.  We have separately been involved in investment real estate for several years, and we are now planning to start a new business together with intent to invest in long-term multi-unit rental properties in the Carolinas.  I am interested to receive feedback as to the best state for registering our business at the top-of-house level.  We both live in Ohio, but I think there are probably tax and legal benefits to registering in another state, such as Wyoming.  I would appreciate feedback from forum participants as to which state is considered the best and why.  Thank you.

I like Columbus Ohio because I see it being one of the biggest metropolitan cities in the next 10-20 years, all signs are pointing here! Population is growing aggressively and jobs are moving here especially with major employers like Intel, Google, Amazon, Nationwide, etc. On top of that, you have one of the biggest and best universities in the world here with Ohio State University. The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here. On top of that, you get great appreciation and very landlord friendly laws. Tons of investors are buying Columbus up! As an investor and agent here, let me know if you have any questions or want to connect