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LLC not needed for rental property
Hello BP!
I hope you all are doing great! So a couple of months ago i created an LLC in Cleveland (i live in California), i did so in order to place my rental property and all that. Now that the LLC is created, i decided to leave it under my name and not transfer it to the LLC. Am i going to get penalized for doing so? Can i still keep the LLC? whats the right course of action?
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#5 Tax, SDIRAs & Cost Segregation Contributor
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- Atlanta, GA
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#5 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Atlanta, GA
If the LLC is 'doing business in California' it will have a CA Form 568 obligation and must pay the $800 annual CA LLC tax.
California paints 'doing business' with a pretty broad brush. If any of the LLC's managers (including member-managers) are located in CA, generally speaking the LLC is doing business in CA.
It sounds like the LLC has no purpose. It might be best to dissolve it. Consult your CPA/EA and attorney.