Legal Question in Business Law in California
I am a Californian. If I established a LLC in Nevada, Arizona, or Delaware and it is solely holding investments (stocks, bonds, CDs, NOT real estates). I will managed the investment in California, would the LLC be subject to the California franchise tax of $800?
Asked on 1/04/11, 10:58 am
1 Answer from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
Yes, the LLC would be subject to registration and taxation in California. When an LLC or corporation is engaged in a passive activity such as holding and managing an investment portfolio, the question as to where it operates becomes, more or less, "Where is the hand that clicks the mouse?"
Answered on 1/09/11, 2:34 pm
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