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I wonder about this. Suppose you incorporate a LLC in Delaware that buys some stocks, and some houses in Arizona and rents them out. But you live in California.
by shrimpx 6y ago
I wonder about this. Suppose you incorporate a LLC in Delaware that buys some stocks, and some houses in Arizona and rents them out. But you live in California. Is your LLC “doing business with California”?
- poulsbohemian 6y agoI had a scenario a bit like this, but not involving any of the states you mention above. So long as I didn't have business nexus (IE: an office, employees, etc) that would come on the radar of the state, it was all clean according to my accountant and lawyer - but there's the rub in that if you have those kind of multi-state issues, you'd better have at least one lawyer and at least one accountant who know those jurisdictions and can actually answer this question.
- nodamage 6y agoYes. The fact that you manage the LLC from within California constitutes "doing business in California". See the examples on this page: https://www.ftb.ca.gov/forms/misc/3556.html#Doing-Business-in-California https://www.ftb.ca.gov/forms/misc/3556.html#Doing-Business-i... Paul is a California resident and a member of a Nevada LLC. The Nevada LLC owns property in Nevada. The LLC hires a Nevada management company to collect rents and provide maintenance. Paul has the right to hire and fire the management company. He occasionally has telephone discussions from California with the management company in Nevada regarding the property. He is ultimately responsible for the property and oversees the management company. Paul conducts business in California on behalf of the LLC. The LLC must file Form 568.