If you set up an LLC in another state, and that LLC does business in California, you have to register the LLC in California. and in doing so, the LLC must pay California franchise taxes. the minimum annual tax was $800 the last time I checked. and you have annual filing requirements in Nevada, too.
I work with some NV limited partnerships. I would not be surprised if NV-LLC’s have the same rules.
Each year, we have to pay a $125 fee when we file our annual list of partners, plus we have to pay a local company to act as agent. that’s another $70 or so. [you must have an in-state agent for service of process. if you have a friend in NV willing to do it, fine. but if not, you have to hire one.]. NV enacted some kind of business license tax recently, and we are filing that little thing too. I think the tax is $100.
LLC in Nevada vs. LLC in California - Posted by Angelica
Posted by Angelica on August 11, 2006 at 03:43:45:
My husband and I are new in real estate investing. We already know that it is better to set up an LLC than investing as sole proprietors. I’ve heard a lot of people say that setting up an LLC in Nevada is better than setting one up in your home state. We are from California and would like to know some pros and cons of each before actuall setting up the LLC. Thanks!
Re: LLC in Nevada vs. LLC in California - Posted by Garrett Sutton
Posted by Garrett Sutton on September 05, 2006 at 17:27:17:
You need to consider whether to use a LP instead of an LLC in California. The state has an extra tax on LLC’s and not on LP’s. As well, California law is not favorable for LLC’s, which is the reason to set up in NV or WY. Good luck, Garrett