Forming an LLC in which State?

[Jason S.]

Hi,

I am planning on investing in multi-family properties in California and currently reside in California. I would like to register as an LLC. Which state should I register in?

Thanks in advance!

Jason

[Katie L.]

@Jason S. If you are a resident of CA and are investing in CA, is there a reason you are considering another state? If you register in another state, you will have to file as a foreign LLC in CA since you will be doing business in CA. You will owe the $800 minimum tax to CA whether you register in CA or out of state. Maybe skip the hassle of having to register in another state and just create a CA LLC? I don't know all the facts here or your full situation so I will refrain from giving my opinion but seems that would be the clear-cut answer based on your one-line post. Not sure what city in CA you live in, but if you need referrals for attorneys or accountants, let me know.

*This post is not legal advice and is not to be relied upon.  Readers are advised to seek professional advice.  The post does not create an attorney-client nor CPA-client relationship.