How to avoid the franchise tax if I live in California

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?


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

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).

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.