How to structure partnership

[Jeff Caravalho]

Hi BP,

I'm looking into purchasing a house with my brother in law in Mississippi, North of Oxford. It was his brothers (he lives next door). I live in Sacramento , CA. We are thinking of putting it in an LLC. but aren't sure if that's the right structure with me being in Ca. and him in Miss. Is this something we can set up in NV or one of those states that are great for LLC's?. We'd eventually like to purchase more properties, possibly in other states. Thanks.

[Tobias Falzone]

Be careful how you set this up and be aware that you will still find yourself paying CA corporate taxes even if you register the LLC out of state. The BOE doesn't care if some members are not residents or that all business is conducted out of state. If they find out that a managing member lives in CA, they will pursue.