[quote=earlyretirement][quote=flu][quote=EconProf]$800 is what I thought too.
I just set one up in AZ for an AZ property–was well under $200, but can’t remember specifically.[/quote]
Yes, but you see if you plan on doing business in CA (IE renting out to tenants), it doesn’t matter….You’ll end up needing to pay to do business in CA anyway…
But I guess if it’s for your primary residence, that’s a different story…Not sure what that means from getting a mortgage. But then if you buy out your primary outright, then that’s not an issue…[/quote]
Flu,
That’s exactly correct. If you set up the LLC with the intent and purpose to rent it out to others and not use it as a primary residence then you also have to register the out of State LLC in California and pay the $800 a year to California.
But when I called them to ask about this fee if the sole purpose was to set up a Delaware LLC to live in it they asked me to send the Articles of Incorporation and they said no I didn’t have to pay the $800 annual fee to California if I was living in the house and not renting it out.
Although they were quick to point out if at ANY point for any reason if I rent out the house or derive any income from it I’d have to pay the $800 annual fee to California.
I still do end up transferring from myself to myself (LLC bank account) the rent each month but I guess that’s not considering “doing business” to California. The Articles of Incorporation were very clear that no business was being done and I was using it as my sole primary residence.[/quote]
Just curious… Do you have a mortgage on your primary? If so, how did you get it?
