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Multiple LLCs for Rental

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  • Multiple LLCs for Rental

    CA state charges minimum franchise tax of $800/year for S-corps and LLCs. If we decide to create an LLC and open additional LLCs under main LLC for various rental properties (national and international), each LLC will likely be charged this fee. Is there a suggestion for a different structure for proposed business?

  • #2
    Check if there is a serial LLC structure in CA. That would work beautifully.

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    • #3
      Not allowed in California

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      • #4
        In California each unit of a series LLC  that does business in California gets hit with a separate $800 annual fee.  As so often happens when California doesn't conform to federal taxation law, it is to the detriment of the California taxpayer.

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        • #5
          Thank you Hank.

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          • #6
            No serial in Cali.   We put in single LLC; increased cross risks, but $800 per unit too much to uncle sacramento for this poor fellow. 

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            • #7




              No serial in Cali.   We put in single LLC; increased cross risks, but $800 per unit too much to uncle sacramento for this poor fellow.  ????
              Click to expand...


              Agree. Thank you.

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              • #8
                We opted no LLC for a partial interest in a duplex worth under $500k. We have $1M liability on the property and our umbrella of several million is additional. We felt comfortable with these layers of protection.

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