Can a Nevada LLC own an apartment building in California?

[sefnfot]

What is the name of your state (only U.S. law)? CA and NV

I read the RICH DAD books on LLC and it suggested setting up the LLC in NV or FL or DE.
I'm about to setup a legalzoom LLC and I want to know if a Nevada LLC can be the owner on Title of an apartment building that is in California?

Or do I have to set up2 LLC's so the NV LLC is the owner of the CA LLC ?

 

[NIV]

What is the name of your state (only U.S. law)? CA and NV

I read the RICH DAD books on LLC and it suggested setting up the LLC in NV or FL or DE.
I'm about to setup a legalzoom LLC and I want to know if a Nevada LLC can be the owner on Title of an apartment building that is in California?

Or do I have to set up2 LLC's so the NV LLC is the owner of the CA LLC ?

You can own your CA property in a foreign LLC without problem. I have not read the "Rich Dad" books, WHY does the author suggest the arraignment? Unless it is the limited remedies available against a NV LLC (I believe only a charging order is allowed--but am not sure.), I'm not sure what you gain.

 

[FlyingRon]

They recommend NV LLCs because the tax, fee, and filing requirements are minimal there.

The problem is that depending what you want to do with the property, it's probably not going to do you much good. If the LLC is engaging in business other than just holding the property, you're still going to have to register with the California FTB and pay the taxes as if you had a California LLC.

Further, depending what exactly you are doing, holding the property in an LLC may do absolutely nothing for you other than subjecting you to additional tax and paperwork.

 

[NIV]

If the LLC is engaging in business other than just holding the property, you're still going to have to register with the California FTB and pay the taxes as if you had a California LLC.

California LLC tends towards "fees" and not taxes. The tax for any income is usually paid by the member. The fact that the property is in CA will usually mean the foreign LLC is "doing business in California" and will have a return required. "Registration" is not required there but with the Secretary of State in certain conditions.

editeditedit
For other rules, see https://www.ftb.ca.gov/forms/misc/3556.pdf

 

[FlyingRon]

You can call it a fee if you want, but the state calls it a tax and it's based on income (though it has a minimum amount).

 

[NIV]

You can call it a fee if you want, but the state calls it a tax and it's based on income (though it has a minimum amount).

I disagree. The state calls the amount owed for LLC income a fee and the $800 minimum amount you are talking about a tax. The reasons why it is important gets to state constitutional issues and a lot of litigation surrounding Proposition 13.

https://www.ftb.ca.gov/forms/misc/3556.pdf

LLC Fee Litigation
Four separate cases have been filed challenging the constitutionality of the LLC fee as calculated according to former R&TC Section 17942. Each case presents separate factual circumstances. The following two cases are now final:
â—� Northwest Energetic Services, LLC v. Franchise Tax Board (2008) 159 Cal. App. 4th).
841 (NES)
â—� Ventas Finance l, LLC v. Franchise Tax Board (2008) 165 Cal. App. 4th 1207 (Ventas)

The following two cases, which also challenge the fee statute on additional grounds, are still ongoing as of the date of this form's publication.

â—� Bakersfield Mall, LLC v. Franchise Tax Board (Bakersfield)
â—� CA Centerside ll, LLC v. Franchise Tax Board (Centerside)

An LLC with an open statute of limitations may want to file a protective claim for refund to withhold any action on its claim while this litigation is pending.

I believe the court in Northwest found that even though the state called it a fee, it was a tax. The discussion was long but might be instructive to those who think the difference unimportant. (And, why I awkwardly wrote my first post as I did.)

 

[Just Blue]

Px Hx is a "trip".