LLCs and Bank Accounts for Out-of-State and Foreign Real Estate Investors in Kentucky and Indiana

September 30, 2026 at 4:00 AM

by Rob Bergeron

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Almost every out-of-state investor asks us the same thing early: "Should I buy this in an LLC, and which state?" We'll give you the lay of the land here. Your attorney and CPA make the final call, because the right answer depends on your lender, your taxes, your other properties, and where you live.

Your options for holding title

Your own name: simplest and cheapest, and required by some loan programs. No liability separation between the property and your other assets. Insurance, including an umbrella policy, carries more of the load.
A Kentucky or Indiana LLC: formed in the state where the property is. Cheap to set up and maintain, and no second-state registration.
An LLC from another state, like Wyoming, Delaware, or your home state: popular with people who already have one. It generally has to register as a "foreign LLC" in Kentucky or Indiana before it does business there, so you end up maintaining two states' filings.
A holding structure: some investors use one LLC per property or a parent company with subsidiaries. That's a legal and tax design question for your advisors.

Kentucky LLC costs and requirements

Forming a Kentucky LLC (articles of organization) costs $40 with the Kentucky Secretary of State.
The annual report is $15, due by June 30 each year.
An LLC formed in another state registers in Kentucky with a certificate of authority, which costs $90.
Every LLC needs a registered agent with a physical Kentucky address to receive legal papers.
Kentucky also has a Limited Liability Entity Tax (LLET), with a $175 minimum for many entities. Ask your CPA whether yours owes it.

Indiana LLC costs and requirements

Forming an Indiana LLC costs about $95 online through the Indiana Secretary of State.
Indiana requires a business entity report every two years, about $32 online.
As in Kentucky, you need a registered agent with a physical Indiana address, and an out-of-state LLC generally registers as a foreign entity before doing business in Indiana.

Fees change, so confirm current amounts with each Secretary of State's office when you file.

Why "just use a Wyoming LLC" isn't always cheaper

Wyoming and Delaware LLCs are popular for privacy and low fees. But if the property is in Kentucky, that LLC generally still has to register in Kentucky, keep a Kentucky registered agent, and file Kentucky reports. You're paying for two states instead of one. Sometimes it's still worth it. Often a simple Kentucky or Indiana LLC is the cleaner answer for a rental that's actually here.

Lenders care about your entity

If you're financing, talk to your lender before you form anything.

Conventional investment property loans are usually made to individuals, not LLCs.
DSCR loans (debt service coverage ratio loans, which qualify on the property's rent instead of your personal income) commonly lend to LLCs, usually with a personal guarantee. See our DSCR loan guide.
Foreign national loans often require the US LLC's articles, operating agreement and EIN. See our foreign national and investor loan guide.
Commercial loans on 5+ unit multifamily and commercial property are routinely made to entities. See our commercial loan guide.

For foreign investors: getting an EIN and a US bank account

A nonresident who isn't a US citizen can own a US LLC. The LLC gets an Employer Identification Number (EIN) from the IRS, and the foreign owner doesn't need a US Social Security number to get it.

A US bank account for the LLC is where it can slow down. Many US banks want to meet the owner in person, verify the passport, and understand where the money comes from. Plan for that. Some investors open the account during a visit to see properties. Others work with banks that have international client desks. Either way, start this early, because you want the account open before closing so rent, property tax and insurance run through it from day one.

The foreign-owned LLC filing you cannot miss

A single-member US LLC owned by a foreign person must file a pro forma IRS Form 1120 with Form 5472 attached every year, even if the LLC otherwise has no US tax to pay. The penalty for missing it is $25,000. More in our FIRPTA and US tax guide.

Beneficial ownership reporting after 2026

After an August 2026 final rule from FinCEN, companies formed in the US no longer file beneficial ownership information reports under the Corporate Transparency Act. Companies formed outside the US that register to do business in a US state still do. If you're using a company formed in your home country and registering it in Kentucky or Indiana, ask your attorney about that filing.

Deeding a property into an LLC after you buy

It can be done, but it's not free of consequences. A transfer can raise questions under your loan's due-on-sale clause, affect your title insurance, and in Kentucky trigger the deed transfer tax unless an exemption applies. It's usually cleaner to decide the entity before closing and buy in its name from the start.

Frequently asked questions

Should I use a Kentucky LLC or a Wyoming LLC for a Louisville rental?

For a property located in Kentucky, a Kentucky LLC is often simpler, because a Wyoming LLC generally still has to register and maintain filings in Kentucky. Your attorney may have reasons to prefer another state. Decide before you close.

How much does it cost to form an LLC in Kentucky?

$40 to file articles of organization, plus a $15 annual report. A registered agent service, if you use one, is extra. An out-of-state LLC registering in Kentucky pays $90 for its certificate of authority.

Can a foreigner open an LLC in Kentucky or Indiana?

Yes. You don't need to be a US citizen or resident to own a US LLC. You'll need a registered agent in the state, an EIN from the IRS, and a US bank account is strongly recommended.

Do I need an LLC to buy investment property?

No. Many investors start in their own name. An LLC is about liability, organization and sometimes financing. Talk with your attorney, CPA and insurance agent.

Get the structure right before you shop

We'll introduce you to attorneys and CPAs who work with out-of-state and foreign investors, and make sure your offer is written in the right name. Start on our out-of-state and international investor intake form or book a call with Rob.

More guides for out-of-state and international investors

Winner Realty is a real estate brokerage licensed in Kentucky and Indiana. We are not attorneys or accountants, and this is general information, not legal or tax advice. Fees are from the Kentucky Secretary of State and published Indiana filing schedules as of September 2026 and can change.

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