407-344-1012 
July 27, 2025 
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Thinking about forming an LLC for your real estate investments? In this video, we break down the best states to open an LLC for real estate investors, including popular options like Wyoming, Delaware, Florida, and Texas.
We’ll also cover when it makes sense to use a Wyoming LLC holding company for privacy and asset protection, and when you’re better off forming an LLC in your home state.
✅ Learn about:
- Pros and cons of forming an LLC in different states
- How a Wyoming holding company works for real estate investors
- LLC privacy, asset protection, and tax considerations
- Common mistakes to avoid when choosing your LLC location
Whether you’re investing in rental properties, flipping homes, or building a real estate portfolio, this video will help you make the smartest decision when forming your LLC.
📞 Need help setting up your LLC or real estate business structure? Contact us for a consultation: www.freedomtaxaccounting.com
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⚠️ DISCLAIMER
This video is intended for education purposes and should not be taken as legal, financial or tax advice. You should consult with a professional about your unique situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. are providing educational content to help small business owners and individuals become more aware of certain issues and topics, but it cannot give blanket advice to a broad audience. Things are always changing, therefore, this channel may not contain the most up-to-date information. Neither Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. nor its members can be held liable for any use or misuse of this content.
TRANSCRIPTION
Welcome to the Freedom Group channel. We are a family of four companies proudly serving the community for over 20 years in taxes, accounting, insurance, financial planning, and real estate. In our consultations, we typically hear real estate investors tell us that I should open up an LLC in Delaware, Wyoming, Nevada, or even Florida for my real estate investment.
In this video, we will answer the question, what is the best state to open your LLC for your real estate investments? And we will also cover when opening an LLC in Wyoming or Delaware might make sense, just like you’ve seen online. Let’s go. Before we start, remember that every case is different and there are many different real estate LLC structure strategies available.
The information provided in this video applies to 90% of people that are starting out in real estate investing, but there are always exceptions. That is why we always recommend consulting with a professional to make sure you are implementing the best legal and tax structure for your specific case. If you would like to schedule a consultation with us to design the best business structure for your real estate investments, click on the consultation link in the description of this video.
Now, let’s start with the basics. Why even form an LLC for real estate? The biggest reason is liability protection. If someone sues over your property, your personal assets stay safe.
LLCs also offer flexible tax options. LLCs can be taxed in different ways to help meet your financial and estate planning goals. Some LLC structures even offer privacy to keep your name out of public records, which offers additional legal protection.
But here’s the catch, where you form the LLC matters, and not all states are created equal. Many new real estate investors think that Wyoming, Delaware, or Nevada are the best states because of tax perks and privacy. Sounds great, right? But if you’re buying property in Florida and you form your LLC in Wyoming, guess what? You still have to register your Wyoming LLC in Florida as a foreign entity.
That means extra fees, extra paperwork, and you lose the privacy you were looking for. So here’s the golden rule for most real estate investors. Form your LLC in the state where the property is located.
If you’re buying real estate in Texas, form your LLC in Texas. If the property’s in Georgia, form your LLC in Georgia. Why? Because real estate is a physical asset.
The state where the property is located has legal jurisdiction. Forming your LLC in the same state where the property is located means less paperwork, no foreign registration, and smoother process overall. Now, you may be asking, then why do people keep talking about Wyoming or Delaware LLCs for real estate? Here’s the truth.
In certain cases, a holding company in one of these states makes sense. If you’re running a real estate syndication with investors from multiple states, or if you’re a high-level investor with multi-state holdings, or if you need privacy or anonymity for legal reasons, then forming a Wyoming or Delaware holding company might make sense. With proper planning.
Let me give you an example of how to set up your real estate investment business structure if you need privacy to keep your name out of public records for additional legal protection. Let’s say you’re buying a rental property in Florida. You form a Florida LLC to own the property.
But Florida does not protect your privacy. The owner names are public. To protect your identity for your Florida real estate investment, you must also open a holding company in a state that does not disclose the names of the company owners.
Here is where holding companies in the state of Wyoming, Delaware, Nevada, or even Ohio come in. You open a holding company in one of these states, let’s say Wyoming for this example, and you make the Wyoming holding company the owner of the Florida LLC, and the Florida LLC owns the property. If someone looks up the name of the owner of the Florida property, they are going to see the name of your Florida LLC.
Then they look up the name of the owner of the Florida LLC, they will not see your name. They will see the name of your Wyoming holding company. And if they look up the owners of the Wyoming holding company, the state of Wyoming does not disclose the name of the owners.
This adds a layer of privacy. So if you’re not sure what is best for your situation, do not guess. Schedule a consultation with our team here at Freedom Group.
We will look at your property location, your tax situation, and your goals, and give you a plan that fits you, not just some generic advice from the internet. Click on the consultation link in the description of this video and get a consultation today. We have helped thousands of investors do this right, and we’re here to help you too.
If you found this video helpful, give it a like, subscribe to our channel, drop a comment below letting us know where you’re going to buy your next real estate investment. And before you go, watch the next video that’s right here on the screen. It provides the top three reasons you should invest in Florida real estate.
Trust me, you don’t want to miss it. Thanks for watching and God bless you. – End of transcription
Summary
Where Should You Form Your LLC for Real Estate?
In this FreedomTax Accounting video, Carlos Hurst tackles a common question among real estate investors: “What’s the best state to open an LLC for real estate investing?” While popular internet advice often promotes Delaware, Wyoming, or Nevada for their tax perks and privacy benefits, that approach doesn’t work for most investors. In fact, for about 90% of new investors, it’s better to form the LLC in the state where the property is physically located.
The Truth About Delaware, Wyoming & Nevada LLCs
While forming an LLC in those states may sound appealing, the reality is more complex. If you’re buying property in Florida but open an LLC in Wyoming, you’ll still need to register it as a foreign entity in Florida. That means extra fees, more paperwork, and the loss of the privacy you were likely seeking.
Instead, Carlos advises: form your LLC in the same state where your property is located. It minimizes red tape and avoids double-registration. Real estate is a physical asset, and the state where it sits controls legal jurisdiction.
When a Holding Company in Wyoming Might Work
There are exceptions. If you’re a high-level investor, running multi-state real estate syndications, or need privacy protections, then a layered structure might work for you.
Here’s how it works:
- You form a Florida LLC to hold your Florida property
- Then, you create a Wyoming holding company that owns the Florida LLC
- Wyoming does not disclose LLC owner names, so this setup provides an added layer of privacy and asset protection.
In this case, the public record shows your Florida LLC owns the property, and that your Wyoming LLC owns the Florida LLC — but your name stays out of the public records.
Don’t Guess — Get a Plan That Fits You
Carlos emphasizes that every investor’s situation is unique. Legal advice from TikTok or YouTube won’t get you the optimal setup. If you’re unsure about the best structure, book a consultation with FreedomTax Accounting. They’ll examine your property location, tax profile, and long-term goals to create a customized plan.
Key Takeaway: Form your LLC in the same state where the property is located — unless you have advanced privacy or multi-state needs. Then, consider a Wyoming or Delaware holding company.
To learn more, watch the next video about why Florida is a smart place to invest in real estate.
Internal Resources
- https://freedomtaxfl.com/business-incorporation
- https://freedomtaxfl.com/tax-planning
- https://freedomtaxfl.com/bookkeeping
