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Updated almost 4 years ago,

User Stats

8
Posts
4
Votes
Olga Zelenko
4
Votes |
8
Posts

LLC California Franchise Tax

Olga Zelenko
Posted

I just discovered that if I live in California and I have an LLC (in or out of state) I will be required to pay Franchise Tax in California (annually 800$) for each LLC.

My first plan was to create for each property its own LLC.

This discover is changing my plans (and my numbers of course 🙄 )

A few options that came to my mind to try to avoid this route:

1. Instead of creating an LLC, purchasing an Umbrella insurance for all the properties.

2. Create 1 LLC and sign a few properties under the same LLC (instead of paying 800$ for each LLC/property)

Are there other options that I didn't think of?

What are the pros/cons for the Umbrella insurance vs LLC?

Thanks for your wisdom in advance 🙌

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