Recommended LLC structuring for out of state?

Hi All
Any advice on LLC set-up for out of state investors?
I’m just getting going at this on the MHP side. I’ve owned only SFR rentals until this point. I’m creating a master LLC in my home state of WA specifically for MHP acquisitions, then from there I plan to set up individual LLCs for solely owning each park. I am 99% sure that my first park or more will be out of state. Now for the question, do you typically set up an LLC within that state you are operating the park, or your home state? Any advantages/disadvantages? I’ll take all advice as your opinion and not as solicited legal advice.

Todd, I am not qualified to offer a legal opinion, but I can tell you what we did and why. Our headquarters is in Delaware, and all of our parks are in states other than Delaware. We have considered setting up a Series LLC with additional LLCs in the series being created for each property. Eventually we decided not to do the Series LLC because not all states recognize that structure. Ultimately we decided to form individual LLCs for each property, and our experience has shown that forming them in the state of the park is best. We do have a few parks owned by Delaware LLCs, so for those, we have to file a foreign registration in the state in which the park is located and we have to hire a second registered agent in that state. This structure is overly complicated and more costly with zero benefit. In the near future, we will restructure the Delaware LLCs to be domiciled only in the state of the park to reduce costs.

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That is very helpful experience. Thank you.

This topic has been discussed before on this forum, try a search for this topic.

Thanks, I just read your lengthy post from April ‘14. Good stuff!!