CA LLC and resides in CA owns Texas property. Will CA LLC suffice or do we need to form Texas LLC?

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What other costs involved ?

Attorney Answers

3
Andrew Kevin JacobsonBusiness AttorneyOakland, CA ·
Is the Texas property being rented out? If so, then the California LLC may be considered doing business in Texas, and it might have to be registered as a "foreign" (in this case, that means "non-Texas") LLC with the Texas Secretary of State. You should create a relationship with a lawyer in the part of Texas where the property is; the lawyer can give you good advice about Texas requirements, and you will have someone to turn to about any legal issues that arise regarding the Texas property.
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Michael Doland ·
Mr. Jacobson hits all the major points. The only remaining observation is that passive ownership of land normally does not require registration, but the most prudent thing would be to verify with a Texas lawyer.
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William Christian ·
Owning real estate in Texas likely constitutes doing business in that state. Perhaps a Texas attoeney can confirm that states laws. You can register your California LLC to do business by accessing the Texas Secretary of State website for registration information. Texas has its own penaltys and legal sanctions for failing to qualify. Usually we form an in state LLC to own real estate in Texas. While you can use a California LLC, why subject the entity to Califirnia satae taxes and still have to pay to have an entity qualified to do business in Texas. You might consider comverting your California LLC to a Texas entity.
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