California syndicators/operators and the FTB tax arm

[Bryan Zuetel]

Because of the long arm of the California Franchise Tax Board and what they consider doing business in California, my LLC will be deemed to be doing business in California, since I'm managing the LLC from California, even if if the property is located outside of California. By doing business in California, the LLC may be subject to the heavy LLC franchise taxes of California.

For any syndicators/operators based in California, have you faced any resistance from potential investors to the LLC being deemed doing business in California and paying California LLC franchise taxes?