Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 13 years ago,

User Stats

5
Posts
1
Votes
Eishay Smith
  • Landlord
  • Cupertino, CA
1
Votes |
5
Posts

Nevada LLC for California investor with properties outside CA

Eishay Smith
  • Landlord
  • Cupertino, CA
Posted

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

Loading replies...