Is there any legal disadvantages for a Californian filing for LLC in Nevada? thanks

Your foreign LLC will have to register in California as a "foreign" LLC under most circumstances. Passive real estate ownership may not require this but maintenance of a bank account, income producing property, and other indications of active presence will require this. There is no "legal disadvantage" to incorporating in Nevada, but no advantage either based on you posting.

Assuming that you're considering Nevada for tax purposes, it's too complex to determine without speaking to an attorney. I'd agree that it probably won't be worth it in your situation though, as most of the benefits are suited for mid- to large sized corporations. Plus, you will still be subject to any applicable annual filing fees in Nevada, in addition to those for foreign entities in California.

Yes, the disadvantage is that you will still have to register the business in California, so you will have to manage two entities and possibly pay taxes twice. If the property is located in CA, you are probably better off just starting a domestic LLC in CA.

From my point of view there are no legal diadvantages other than possible income tax issues that arise from the venue state where the LLC's revenue is generated. Those are tax issues that need to be referrd to a competent tax adviser. to gain an understanding of the risk/benefit. Of course states like Nevada and Oregon with no personal income tax are attractive for that reason alone, but if you've got no brick & mortar locationn withint the state where the LLC is organized/licensed, it is a red flag to CA's franchise tax board who are always trying to maximixe income tax recovery.

The disadvantage inherent in forming your LLC in Nevada, *if* you are doing business in California, is that you will have to register in CA, as well - i.e., you will need to pay two states, rather than one, for the privilege of your LLC's existence. Please see the post at the link provided below.