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Updated about 11 years ago,

User Stats

51
Posts
10
Votes
Emma S.
  • SoCal, CA
10
Votes |
51
Posts

LLC based in CA doing business out of state

Emma S.
  • SoCal, CA
Posted

I'm about to set up an LLC to purchase my first out of state rental property.

Then I read some forum posts saying that an LLC based in one state & operating rentals in another has to register as a foreign entity in the other state too. That means double the paperwork & license fees ???

Secondly for CA LLC's, the Articles of Organization which has a $70 filing fee (in addition to the business license fee $151) also states on the form that: "LLCs in California may have to pay a minimum $800 yearly tax to the California Franchise Tax Board" Whoa!

Can those of you in CA in similar situation share your experience? Just seems like a lot of trouble & wondering if I should just buy the property in my name & forget about the LLC for now?

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