Where to Set Up an Investment Entity

[jls944]

My question involves real estate located in the State of: MA

I am looking to set up an entity for a buy and sell real estate investment company. My main objectives are to reduce taxes and asset protection. It looks like one of the better options is to set up an LLC and be taxed as an S corp so I don't have to pay self-employment tax. Since I am just starting out and will be doing this part time for a while, I want to keep my costs low. Massachusetts currently charges $500/year for an LLC. What are your thoughts on me setting up an LLC in NH, which only charges $100/year and file paperwork to do business in MA? $400 may not seem like a lot but over 10 years, that's a $4k savings. Also, does anyone know of RE attorneys on the North Shore of Mass?

[Mr. Knowitall]

This is something to discuss with your accountant, with full awareness of the additional costs and burdens you might place on yourself by creating your business in another state. It appears to cost, for example, $500 to register your foreign LLC to do business in Massachusetts, and you may have to pay additional annual fees, file tax returns in both states, etc.