Hey guys!
Love the show and support for us small business owners…poring over The Tax and Legal Playbook!
We’re based in Texas and sold operating businesses recently and looking to diversify into some real estate - specifically short-term rentals in different states - Florida, Montana, Colorado, New Mexico, Tennessee…places we love to visit so lets try to have some landing spots that pay for themselves and some more. That’s the dream!
Do we need to - or is there some benefit - to setting up LLC’s in each state where we will buy property or just do it from our home base of Texas? (Separately, for our operating businesses we used a separate LLC taxed as an S for each store but for real estate, thinking we may not need a separate one for each property depending on the equity in each property - from your book!). Don’t want the complexity of multiple states for ownership but don’t know if the tax benefits make it worthwhile?
Thanks folks!
Martin