Fractional ownership in syndicated LLC in IRA, $800 LLC tax?

10 Replies

Hi,

I am wondering, if I invest in a syndicated deal where I own fractional ownership in a LLC using an IRA, does that mean it would be subject to the yearly $800 California franchise tax?

Thanks!

@Dmitriy Fomichenko I have a quick question somewhat based on this situation (apologizes, for hijacking this conversation). If I wanted to do a partnership in TX and create a LLC to structure the partnership in TX, would I still have create a LLC in CA just to be part of the LLC in TX because I live in CA?

@Daniel Y. I am not an entity structuring expert and you didn't provide sufficient information to answer your question. But generally you would have to register an LLC in the state where it will be conducting business. Search the forum for related discussions so you can learn from others.

Originally posted by @George Blower :

@Daniel Y.

Are you investing the CA LLC in real estate located in Texas or real estate located in CA?

No, the question is if I live in CA, but have no LLC created at all in CA. If I do flip deal in TX, where we create a LLC because there are a few partners. Does CA require me to create a LLC or pay a $800 fee, which is equivalent to the LLC franchise fee, for "doing business" in Texas?

I had the same question for my CPA. He said CA is going to get their $800 one way or the other.