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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Corps. Posted by Craig in LA on February 14, 2004 at 3:18 PM In Reply to: Corps. posted by JK on February 11, 2004 at 11:40 PM : Hello : Can a NV corp hold real estate in CA without filing as a foreign entity ? : Thank you This is a gray area. Tecnnically, a corporation "doing business" in California is required to register with the Secretary of State and fork out the $800 annual tax. "Doing business" is VERY broadly defined by the Franchise Tax Board. If you are collecting rents on the property, you are probably doing business. If you are holding for long term investment, you are probably ok for corporate tax purposes (see your accountant). The reality of the situation is that if a NV corp owns and holds a few properties in California, no one will be the wiser, especially if they are single family residences. Larger parcels or apartment buildings increase regulatory interest, and therefore odds of discovery - meaning you pay $800. There are simply too many parcels and too many owners to effectively police this. You may want to consider a title holding trust instead. They are not subject to the $800 minimum tax. Follow Ups: Re: Corps. K.D. 7:50 PM, 03/11/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hello : : Can a NV corp hold real estate in CA without filing as a foreign entity ? : : Thank you : This is a gray area. Tecnnically, a corporation "doing business" in California is required to : register with the Secretary of State and fork out the $800 annual tax. "Doing business" is VERY : broadly defined by the Franchise Tax Board. If you are collecting rents on the property, you : are probably doing business. If you are holding for long term investment, you are probably ok for corporate tax purposes (see your accountant). : The reality of the situation is that if a NV corp owns and holds a few properties in : California, no one will be the wiser, especially if they are single family residences. Larger : parcels or apartment buildings increase regulatory interest, and therefore odds of discovery - meaning you : pay $800. There are simply too many parcels and too many owners to effectively police this. : You may want to consider a title holding trust instead. They are not subject to : the $800 minimum tax. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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