I'm purchasing a small multifamily property in San Diego and am looking to set up an LLC for liability protection. Do you recommend holding the property in a CA LLC or an out of state LLC entity for this purpose? I have a Texas LLC already set up for my Austin rentals and understand that having a separate entity for each property is best. I also have a W2 job in CA if that makes a difference for tax purposes. Any suggestions would be appreciated.
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
6y
I'm not an attorney, but typically you need a LLC in the state of the business income is being generated. In this case CA. You'd potentially run into tax issues with the state if you held it in an out of state LLC and audited.