LLC Location Question

3 Replies

I am thinking about buying a commercial property in WI and I live in CA. Do I need to create an LLC in WI or CA? Any advice?

Thanks

Sukhwant

If my state of residence charged over $800 just to establish an LLC, I would seriously consider going with the state the property is in. Look into it at least. Glad to see you're not just putting a house in an LLC, but a commercial property. Well done!

I read it somewhere on bp that even if I have an LLC in WI I'll still need to pay $800 as I live in CA

thanks for the response.
Sukhwant

Originally posted by @Sukhwant Kaur :

I read it somewhere on bp that even if I have an LLC in WI I'll still need to pay $800 as I live in CA

thanks for the response.
Sukhwant

As crazy as that sounds, in some cases, you are likely right. An LLC is required to register in LLC (and pay the accompanying fees) if it is "doing business" in California. The FTB takes a very broad view of that. In some cases, if you are controlling the out-of-state LLC from within California, the state considers it to be domiciled in California and thus doing business within the state. I'd recommend consulting with a local attorney or accountant to discuss the situation and get some solid advice before making a decision.