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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Corps. Posted by K.D. on March 11, 2004 at 7:50 PM In Reply to: Re: Corps. posted by Craig in LA on February 14, 2004 at 3:18 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. ************************************************************************************************************ If a Title Holding Trust holds "Income Producing/Investment" (Rent money)Properties does it avoid paying taxes altogether? Follow Ups: 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. : : ************************************************************************************************************ : If a Title Holding Trust holds "Income Producing/Investment" (Rent money)Properties does it avoid paying taxes altogether? 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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