Chicago, IL asked in Business Formation for Illinois

Q: My commercial property is owned by an LLC that we set up.

I’ve gone and purchased another building out of state — should I use the same LLC for that one, or form a new one if the other state?

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1 Lawyer Answer
Mazyar M. Hedayat
Mazyar M. Hedayat
  • Romeoville, IL
  • Licensed in Illinois

A: You ask if you should create a new limited liability company (LLC) to own and manage an out-of-state building (commercial?) that you recently acquired.

There is no one "right" answer to this question, but I recommend you look into either the creation of a new LLC (it may have to be formed in the state in which the property is located) or, in the alternative, consider a "Series LLC" that can own numerous properties, each under its own entity. Many real estate investors with multiple properties use a Series LLC. In any event, I strongly recommend consultation with an Attorney in your area before making a final decision or taking further action.

I hope this information was helpful. Best of luck.

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