LLC structure for california resident with Indiana properties

[Karthick Bhaskaran]

Hi Everyone,  I need some advice on structuring the LLC's and cost benefits. I'm a California resident planning to live here for at least the next 10 years. I currently own two properties in Indianapolis approx 50k each. I plan to purchase 1-2 more this year. I am trying to understand the best way to create the LLC structure. After looking at wyoming , Nevada and Delaware LLC, it seems that the kind of protection they are providing is not warranted or required or helpful for what my long term goals are. 

1) Create an Indiana LLC to put the 2 properties in there. and Create additional LLC's for each 2-3 properties.

2) Create California LLC to be the Holding LLC for the Indinapolis properties ( Pay initial LLC creation costs and yearly $800 fees)

Any advice would be appreciated. Thank you.

Some of the resources I sourced my information from: 

https://www.corporatedirect.com/wp-content/uploads...

http://www.corporatesecuritieslawblog.com/2014/07/...

http://www.keytlaw.com/callclaw/ca-member-non-ca-l...

[Brandon Hall]

Here's the thing - CA has a very liberal definition of what "doing business" means and if you are deemed to be doing business in CA, you will be subject to applicable franchise fees. 

So if you have an LLC in another state and no LLC in CA, but you live in CA and operate from your home in CA (or an office or coffee shop or wherever in CA), then you will need to create a foreign entity in CA and pay the $800 minimum franchise fee.

Does everyone do this? No. Should you seek legal counsel if you intend to avoid this? Yes. 

You could potentially avoid this by granting an ownership stake in your LLC to a non-resident of CA (think friends or family). This person would need to be the general partner. You would be a passive partner, basically the money guy. At that point, you're not actually doing business in CA because you're not calling the shots. You would just need to make sure you can actually structure deals and your facts to support that strategy as it can hurt if you're caught red handed.