Can a Mississippi LLC own rental property in another state?

Yes, you'll need to foreign qualify your LLC in Alabama. It's not automatic. You'll have to file a certificate of authority and pay fees. Also, get a registered agent there.

What she said. I own a rental in Louisiana and had to register my MS LLC therre. It's a pain but doable.

Could you just create a new LLC in Alabama instead? Might be simpler.

That's what I didd. Two separate LLCs. Keeps liability separate and avoids foreign registration hassle. But then you have two sets of taxes and fees. Worth it for me though.

I'd talk to a lawyer. I tried DIY and got fined for not registering. Cost me more in the end.

Wait, do you even need to register if you're just holding the property? I've heard mixed things.

You do if you're collecting rent or managing it. If it's passive, maybe not. But good luck arguing that with the state.

Also, check your Mississippi operating agreement. It might have restrictions on foreign investments or require member approvall.

What about taxes? Does Alabama hit you with corporate income tax?

Alabama has a business privilege tax and income tax. And if you're a singls-member LLC, it's flow-through for federal but Alabama might still require a return. Not an expert, just my experience.

Hire a CPA. Seriously. The fees are worth it.

@tacklebox that's what I thought. So many rules.

Thanks, everyone. Looks like I need to do more homework.

One more thing: if you're buying in Alabama, check the property tax exemptions. They have a different homestead exemption for out-of-state owners.

Good luck, OP. Report back on what you end up doing.