All Forum Posts by: Marcos De la Cruz

In 2016, there were two Chief Counsel Rulings by the Franchise Tax Board where they declared, at least in some instances, that business trusts like a Wyoming Statutory Trust, are not considered "corporations" and would therefore not be subject to the minimum franchise tax as defined in CA Rev & Tax Code § 23153. As long as the Wyoming Statutory Trust is taxed as a disregarded entity, it has not triggered the minimum franchise tax for hundreds of our clients who have utilized them successfully. Here is a link to one of the Chief Counsel Rulings 
https://www.ftb.ca.gov/tax-pros/law/chief-counsel-rulings/20...

Quote from @Marcos De la Cruz:

I'll definitely consider it if I can get better insurance, which is ridiculously expensive.

Thanks for your input.

I'd do a search here on BP for LLCs, and you will likely find dozens who have suggested ditching the LLCs. I personally have never used one, and I know many other investors with substantial assets who do not either. My boss' in-laws owned several million in SD real estate and never had any LLCs that I am aware of, and he also owns several properties with no LLC. 

I can think of at least 5-10 regular posters here on BP who have suggested to others that they should just get insurance instead of the LLC route. 

California blows in so many ways other than the weather and scenery. We got out of there as soon as we could and moved to Texas. I would ditch the LLCs. Any attorney can pierce them if they really wanted to. Just get extra liability with your insurance and call it good.

Hey there!

I am an investor in San Diego and have a few properties in Texas and Louisiana. I can assure you that this is unfortunately not the case. My LLCs are in the states of the properties and California can and DOES tax your world wide wealth. Just make sure you're getting all of the depreciation you can to offset this.

Hope this helps.

California is a wonderful state...

...to keep away from  ;)