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Updated about 13 years ago,
Nevada LLC for California investor with properties outside CA
Hi,
I live in California and have few properties in Texas, planning to invest in other states as well.
I would like to create an LLC for the properties. Creating one in CA is expensive ($800 franchise tax/year) and has less asset protection (piercing the veil in CA is common). On the other hand, according to Legal Ruling 2011-01 of CA, if I manage an foreign LLC I must register it at CA and thus loose the benefits of say Nevada LLC.
""If the activities of A or B constitute "doing business" in California, X and Y are also "doing business" in California due to their ownership of the disregarded entities. As a result of "doing business" in California, X and Y have substantial nexus with California.""
I heard that there's an option of creating a CA partnership to own the LLC, but my CPA is not sure its going to work.
Any recommendations?
Thanks,
Eishay