Setting up LLC to invest in another LLC which owns property

[Paul OBryan]

I'm in the process of setting up an LLC with two others to invest in a Nevada syndication project which is owned by a Nevada LLC. We will not be purchasing any real estate; rather we will be investing in an LLC which is purchasing and holding the real estate.

My partners and I are California based and It looks like a Delaware LLC offers the best rates for us (Nevada is second). I am trying to find out if this arrangement requires us to file as a "foreign" qualifier, and therefore have to pay the "foreign qualification" fees in Delaware.

Also any suggestions on a better arrangement would be greatly appreciated.

Thanks