I’ve been doing research and I’ve some states cheaper than others in which to form in LLC. CA is the most expensive I’ve seen with a Franchise tax of at least $800, which increases with net income.
I have heard that nv is the cheapest.
And that’s per year per LLC. Makes it kinda hard to create an LLC for each property to limit your exposure. CA is hard enough to cash flow to begin with. :banghead
MO is cheaper than NV and doesn’t carry the stench. NV also requires a business license in addition to the annual fee.
The reality is that it doesn’t matter because you must register the LLC where you conduct business. If that’s CA, then you are paying CA fees.
I live in CA but will not invest here… way too expensive. I plan on investing in AZ and CO for now. Where would I get a business license and/or LLC?
Thanks for all the responses.
You can organize in any state. That LLC will be registered in AZ, CO, CA,and any other place it owns property.
You can use the following link to view LLC fees by state:
http://www.bizfilings.com/products/statefees.asp
For an LLC, you’re concerned with the first two columns. The second column is the filing fee for the initial formation of the LLC. The other is the annual renewal fee. You’ll see some states have very high filing fees. As others have posted, you will need to file the LLC in the state you intend to do business. In addition, you will need to have a registered agent in that state. The registered agent is someone who will be able to have any legal documents mailed to them at a legal address in that state. Don’t just go off of LLC fees for deciding where to do business. I do business in IL which you can see has a very high filing fee. The flip side is that property values in my area are very low and make it very afforable to buy real estate.