Operating Out-of-State Rental Property

[JPGFlipper]

I live in Indianapolis, IN where I operate small residential property leasing company that I have built since the property collapse. Recently, I discovered several great property investments near the University of Louisville in Louisville, KY. To avoid certain tax issues, I'm considering establishing a new LLC in Kentucky versus extending my Indiana business.

What I am worried about is hiring my bum cousin Jana to manage the properties. Does anyone have any advice regarding Kentucky payroll taxes?

[homealone]

I lived in Kentucky many years ago, though I really can't offer any information on this because it has just been to long ago.

Though I have to comment that if your worried about hiring your as you say Bum cousin, then I wouldn't do it. If this person is that bad that your worried about it then it isn't going to be worth the hassle!

One bit of information that I can suggest is the to check out the Kentucky payroll information online. I am sure that you will be able to find exactly what your looking for or at least find information that will point you in the right direction to get the info that you want.

[missmanors]

I tend to agree with homealone in that if you are worried about hiring your cousin, perhaps you should look into finding someone that you trust more for this position.

As far as the payroll taxes, maybe you should look into contracting out this position and this way you don't have to worry about paying the payroll taxes yourself. The taxes then becomes the responsibility of the hiree. Of course you should research this also.

I'd like to wish you good luck, whatever you decide to do!!

[flippinout]

I had another house about 100 miles from my home but decided to sell it because it was too far away to try to keep tabs on and would have cost me more than it would have been worth to have someone else take care of it.

Plus, when a place sits empty theres always the chance of a lot of property damage and I just didnt want to take the chance.