""If the activities of A or B constitute "doing business" in California, X and Y are also "doing business" in California due to their ownership of the disregarded entities.

@Corby Goade That thought popped into my head but I was so focused on the other side of deal that I disregarded it.

This doesn't mean lenders will completely disregard you; hard money is always open to talk. 

@Cara Lonsdale, well since this is two months old we'll not call it hijacking :)If the LLC is a disregarded entity (it doesn't file a tax return and chooses to be taxed as a sole proprietor) then the LLC and Joe Smith are seen by the IRS as the same tax payer for 1031 purposes. 

If so, regarding the IRS, would that then make the LLC more than a single member LLC, and would we still be able to be considered a disregarded entity?

A Land Trust is a disregarded entity in most places.

A single member LLC is a disregarded entity.

Our LLC is Single Member (SMLLC) to allow for disregarded status to make it easy to put onto our 1040.

You won't need to hear from me those things are often trash.Also I did not disregard the entire post; I acknowledged you may have found a deal.

I received a water bill that wasn't mine and told to disregard in April 2017 and then hadn't seen one until February 2018.