How to avoid the franchise tax if I live in California

Jrennick · October 9, 2007, 10:43pm

Greetings everyone,

I’m about to invest in some property in florida, and I live in california. If I create an LLC in nevada, is there any way for me to legally avoid paying franchise tax?

Thanks,
Joe

BLL11 · October 9, 2007, 11:52pm

Yes, but it would cost you more in legal fees and maintenance than the transfer tax.

aak5454 · October 10, 2007, 4:22pm

Calif is very aggressive in collecting taxes and unless you can prove otherwise, they are going to classify your Nevada LLC as a foreign entity operating in Calif at your Calif address. (thus subject to FTB fee).

Jrennick · October 10, 2007, 4:56pm

I’ll bet that there’s some way to do it - but it’s not really a concern at this point, as long as I make a profit.

Thanks for your responses.

Joe