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Just moved: Register my LLC with California?

Jerbear1212

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Trying to get business LOC and have now had two lenders want me to register my IL LLC (e-commerce) with State of CA. Not sure how long I'll be living here so would prefer not to if there's any way - but I also need the LOC/Loan. Thoughts?
 
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GlobalWealth

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Trying to get business LOC and have now had two lenders want me to register my IL LLC (e-commerce) with State of CA. Not sure how long I'll be living here so would prefer not to if there's any way - but I also need the LOC/Loan. Thoughts?
There is no way to avoid this if you are a CA resident.

The only other option is apply for the loan in IL.


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CareCPA

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There is no way to avoid this if you are a CA resident.

The only other option is apply for the loan in IL.


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And even if you apply in IL, if the LLC is commercially domiciled in CA you still need to register in CA. Commercially domiciled includes directing the operations of your company.
 

Jerbear1212

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And even if you apply in IL, if the LLC is commercially domiciled in CA you still need to register in CA. Commercially domiciled includes directing the operations of your company.

Appreciate your comments. I do know two large e-commerce sellers I have met here in San Diego who told me they have never registered in CA and have NV LLC's. The rub for me is trying to get the LOC so I suppose I will have to.
 
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biophase

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Appreciate your comments. I do know two large e-commerce sellers I have met here in San Diego who told me they have never registered in CA and have NV LLC's. The rub for me is trying to get the LOC so I suppose I will have to.

They prob don’t “live” in CA.
 

SteveO

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I haven't applied for an LLC in another state. But I do recall that an attorney gave me information on how to do this at one point. You should contact an attorney that specializes in LLC's for information.
 

GlobalWealth

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I haven't applied for an LLC in another state. But I do recall that an attorney gave me information on how to do this at one point. You should contact an attorney that specializes in LLC's for information.
Unfortunately California is very strict on this.

He could get away with a NV or other state LLC if he's under the radar, but if he lives there they will require the IL LLC to register as a foreign entity for a loan approval.

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GlobalWealth

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I just went through this a couple of months ago with a client.

We formed a WY LLC for their business. Later they decided they wanted to apply for an sba loan.

Because they lived in CA, we had to register their WY LLC as a foreign entity in CA.

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CareCPA

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Appreciate your comments. I do know two large e-commerce sellers I have met here in San Diego who told me they have never registered in CA and have NV LLC's. The rub for me is trying to get the LOC so I suppose I will have to.
I just provide the information. Since you aren't my client, what you choose to do (or not do) with that information is ultimately a business decision on your end, taking into account the amount of risk you are comfortable with.
 

MJ DeMarco

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Because they lived in CA, we had to register their WY LLC as a foreign entity in CA.

And I'm sure none of that will matter when it comes tax time. The cows need to be milked.

If you take one step over the border into CA to take a shit, expect the Franchise Tax Board to come after you for some BS tax. Yes, they are that ridiculous.
 
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SteveO

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And I'm sure none of that will matter when it comes tax time. The cows need to be milked.

If you take one step over the border into CA to take a shit, expect the Franchise Tax Board to come after you for some BS tax. Yes, they are that ridiculous.
Ha! When I left CA seventeen years ago, they sent me a letter explaining why they had the right to tax my retirement savings. Are you kidding?! They did not though and did not get any of it.
 

MJ DeMarco

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When I left CA seventeen years ago

OMG, and that was 17 years ago!! I guarantee today you wouldn't be getting off so easily. They'd force you to hire a tax attorney and once you endure that process and expense, they'll hope you acquiesce by picking the lesser of the evils, "Give up" or "Continue to pay an attorney $500/hour so the tax board can continue their harassment."

(If anyone can tell, YES I'm bitter and YES I have a history with them -- and I've been to California ONCE in the last decade, but yea, that never stopped their vampires from trying to tax you on something.)
 

TheOwl8

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There is no way to avoid this if you are a CA resident.

The only other option is apply for the loan in IL.


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Just to add some clarity, if you do business in CA you are required to register to do business in CA, whether or not you are a resident of the state. Technically, if you are sitting on your laptop drinking a coffee and 'managing' your business while you are in CA, that constitutes CA business because you are conducting business activity in CA. Even if all of your inventory/employees/whatever/etc is out of the state.

Usually the best way will be to register as a foreign entity, assuming you already have a business entity created in another state.
 
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