Wholesaling in CA: landrust vs flipping LLC

1 Reply

Hello there.. I am a total newbie to investing and trying to learn as much as possible to get started. is there anyone working in CA that has come across the situation where there is title seasoning and cand not assign the contract? Since the cost of establishing an LLC is so much greater here(filing fees plus $800 tax due by the 15th day of the 4th month after LLC formation), I heard using a land trust to flip is an option. From everything i've read, Even applying for LLC in another state does not get around the $800 tax if i'm doing business in CA. I am looking for any info or direction from anyone who has done it, please

Thank you!

@Nicole Pearson

Depends on the situation, how many deals you're doing, your risk tolerance, if you have partners, etc. Yes, the $800 minimum tax is required if you are "doing business" in California. If you create your LLC in another state but you live in California and/or are doing business in California, you will still have to pay the $800 minimum tax.

*This post does not create an attorney-client or CPA-client relationship.  Readers are advised to seek professional advice.