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Foreign LLC

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Message Board Foreign LLC

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 2 months, 1 week ago.

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  • #160952

    Two CA residents set up an Indiana LLC to house commercial rental properties they purchased in Indiana.
    They use their CA address for mailings and manage the property from CA.
    Does managing the property like collecting rent, communicating with property manager, etc., considered doing business in CA?
    Is it necessary to register as a foreign LLC in CA and pay CA fees?

    Thank you.

  • #161103
    Sandy Weiner

    They are doing business in CA and so they must file a Form 568 and pay the annual tax (fees are not required as the income is not CA source income). They may want to register as foreign LLC. Although it is not required if they don’t register they won’t be able to defend themselves in CA court.