California Sub2 startup question

[Gus Moreno]

Greetings everyone,

First of all, I must say that I am very impressed with the amount of useful information that can be found on this site. I recently started reading and learning about RE investment specifically Sub2 deals in the state of California and decided to deepen my knowledge so I can eventually start my endeavor.

The good news is that the more I read the more everything start to come together, however there are some general concepts that I am still trying to figure out. For example: Is it beneficial to start a LLC or a different business structure to avoid paying the 3 1/3% Franchise Tax? Please know that I am not trying to avoid taxes, but if there is a legal way to go around it, I definitely would like to know.

Thanks in advance.