The LLC is mainly for tax purposes. A popular one is Montana LLC's because they're quick and easy to set up and there are services that will do all of the work for you. You'll see high end motor homes cars and yachts in LLC's so that when you sell the motor home or yacht you sell the LLC not the property of it. That way there is no sales tax on the LLC so no tax on the motor home or boat, yacht, car ect. If you're buying an 800k coach or boat it starts to add up. Also if you're a California resident who purchased a boat, and either registered it in that state or documented it with the Coast Guard the state finds out and automatically sends you a sales tax bill. And if you proved you paid sales tax then they send you a use tax bill and what ever county you're in sends you an unsecured property tax bill every year. So the answer to all of that is an LLC out of state.