Q: I am looking to form an LLC for my rental property business in Pennsylvania. I live in New York. Interested in Wyoming
Interested in the protections of Wyoming, but don't know if I should just stick with Pennsylvania or New York. My main concerns are asset protection and tax savings
A: For a Pennsylvania rental property, a Pennsylvania LLC would seem the most efficient and cost-effective option for minimizing extra filings, and fees, while maintaining direct asset protection within the state where the property is located. While Wyoming offers excellent asset protection and no state income tax, if you were to form the LLC in Wyoming for a Pennsylvania property, Pennsylvania would still consider your business as operating there. You’d need to register the Wyoming LLC as a foreign entity in Pennsylvania, which can add complexity and annual fees. Additionally, any income earned from the Pennsylvania rental property would still be subject to Pennsylvania state taxes, so there would be no state tax savings.
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