Can Utah LLC can be used for purchasing property in California?
4 Replies
Sarah Chung
from Burlingame, California
posted over 3 years ago
If you have LLC that was created in Utah. I am in the process of purchasing property in California. Do I need new California LLC?
Bob Okenwa
Real Estate Agent/Investor from Peoria, Arizona
replied over 3 years ago
If you plan to have an LLC in California, you'd need to create a foreign LLC in California. http://www.sos.ca.gov/business-programs/business-entities/faqs/#form-question7
Tobias Falzone
Real Estate Agent from Folsom, CA
replied over 3 years ago
Yes, but be aware you will be charged the $800 per year Franchise Tax as a corporate entity doing business in California. If you hold it in your personal name or as a sole proprietorship/partnership, this tax will likely not apply to you.
Sarah Chung
from Burlingame, California
replied over 3 years ago
Thank you
Basit Siddiqi
Accountant from New York, NY
replied over 3 years ago
What was the purpose of forming the LLC in Utah?
Does the LLC have property or do business in Utah?
If you have your Utah LLC apply as a foreign LLC in California - you will still likely be paying annual Utah LLC fees with the secretary of state. You may also be paying for a Utah registered agent.
If the LLC is not doing business in Utah - you may want to consider dissolving the LLC and just creating a new entity in California.