Parent LLC (California Franchise Tax)
Hello Everyone,
A partner(@Alex Royster) and I are currently educating ourselves on the RE investing business and hope to soon buy our first rental property. We are looking to invest in the Charlotte area where my partner lives and eventually brach out to other states as well. We plan to start a serious RE business and are looking to start out by creating an LLC.
Currently I live in California and know that we are subject to the $800 franchise tax even if we create an LLC outside of California.
If we were to create a parent LLC (for example in Nevada) and use that parent LLC to own other LLCs in the individual states we have rental properties would we be subject to that franchise tax once(for the Nevada LLC), or for every LLC even under the parent LLC?
I know we should speak to a RE attorney about this matter but I am just curious if anyone has experience with this.
All advise is appreciated!
Thank you