SennaMiller
New Member
We are looking at purchasing an overnight vacation rental cabin in Tennessee for the purposes of making a yearly revenue stream and hopefully capital appreciation of the real estate over the years. We are Georgia residents and plan on managing the rental from our home in Georgia (advertise, communicate with potential renters, accept rental payments and received signed rental contracts, pay espenses, communicate with a local cleaning/maintenance company in TN to take care of the property).
Question: Should we just create a TN LLC since the physical property is in TN or would it be better for us to create a GA LLC, then we would also need to register in TN as a foreign company doing business in TN (which costs an additional $300). Based on my research, running the rental business from GA would not require us to register the TN LLC as a foreign company doing business in GA since we would not physically provide services or goods in GA. Any pros/cons to either? Our CPA advised us to creat the GA LLC and register as foreign company in TN since this would allow us to use the GA court system in the case of litigation without having to travel to TN for potential court cases. Would this be the only advantage? Any thoughts?
From our perspective, seems like just creating a TN LLC would be less expensive and less complicated. Since the physical part of the business (the actual rental property) is located in TN, we either need to be a TN LLC or if GA LLC we would need to register as a foreign entity conducting business in TN. We just don't know the legal advantages or disadvantages? We want to use the LLC to protect our personal assets in the case of lawsuit by a renter, but we don't know if TN or GA has better LLC laws with regard to the "shield" from litigation so that lawsuits could not go after our personal assets.
Thanks in advance to any feedback...
Question: Should we just create a TN LLC since the physical property is in TN or would it be better for us to create a GA LLC, then we would also need to register in TN as a foreign company doing business in TN (which costs an additional $300). Based on my research, running the rental business from GA would not require us to register the TN LLC as a foreign company doing business in GA since we would not physically provide services or goods in GA. Any pros/cons to either? Our CPA advised us to creat the GA LLC and register as foreign company in TN since this would allow us to use the GA court system in the case of litigation without having to travel to TN for potential court cases. Would this be the only advantage? Any thoughts?
From our perspective, seems like just creating a TN LLC would be less expensive and less complicated. Since the physical part of the business (the actual rental property) is located in TN, we either need to be a TN LLC or if GA LLC we would need to register as a foreign entity conducting business in TN. We just don't know the legal advantages or disadvantages? We want to use the LLC to protect our personal assets in the case of lawsuit by a renter, but we don't know if TN or GA has better LLC laws with regard to the "shield" from litigation so that lawsuits could not go after our personal assets.
Thanks in advance to any feedback...