Forming an LLC out of state, living in California

[Account Closed]

Hi all, Firstly, I would like to ask if anyone has a good real estate attorney reference in California? Second, can someone help me understand costs around forming an LLC out of state while I live in California. I know I should discuss this with an attorney (hence the first question) but I would like to screen it here. Basically, I live in CA but would like to invest out of state (Ohio specifically). I am researching starting an LlC in Ohio where my rental properties will be, buy I had read a prior post that seemed to imply that in this situation, because I live in CA I would still owe the CA $800 LLC tax plus the income tax if the net income is over $250k. Is anyone familiar with this? I was hoping that by operating in Ohio, I could form my LLC in OH and not have to deal with the high CA tax implications.

[Jenifer Levini]

Hi @Account Closed, I'm an attorney in California. Here is the link you asked about:

http://www.taxes.ca.gov/income_tax/limliacobus.sht...

If you form your LLC in another state but are running your business from California you still pay California taxes. Plus you have to apportion your income to two states and file additional schedules with your taxes.

If you need any help with real estate law, forming your LLC, etc. please feel free to reach out to me here.

Jen