Wanna Buy a House/Real-Estate Investment As an LLC?

Quick real-estate investing Limited Liability Company tips:

Wanna Buy a House/Real-Estate Investment As an LLC?…annual-report filing fees and taxes can add up quickly, particularly if a person sets up a separate LLC for each property owned. In California, for example, the minimum tax for each LLC is $800. To further complicate matters, some buyers will set up double LLCs so that, for example, an LLC in Nevada is owned by an LLC in Delaware. …fees and tax regulations vary by state….
The increase in investors buying properties to rent out has also fueled LLC ownerships, says Stan Humphries, chief economist at Zillow. In Hawaii, 11% of all homes sold last year used a legal entity, making it the No. 1 state for LLCs, Zillow research found. California, at 6.1%, came in second. David Banks, a partner at Honolulu law firm Cades Schutte, says many Hawaiian homes are purchased as investment properties and need the liability protection. In addition, the state has some of the lowest annual-report filing fees—only $25 compared with Marylands $300.

Read the whole article: Wanna Buy a House? – WSJ.com.