Investment Structures That Avoid California Tax Requirements

Investment Structures That Avoid California Tax Requirements

[00:08] You’re from California. You know that your state loves to tax, especially when it comes to LLCs. You all have to pay $800 per year and franchise tax per LLC. This is true even if you live in California and it’s a Texas LLC that only owns Texas property, you could still be subject to the franchise taxes.

[00:32] Okay.

[00:33] One solution to this, maybe the Delaware Statutory Trust, the Delaware statutory trust is a trust structure and assets is not subject to the franchise taxes as the rules currently are defined by the franchise tax board. The Delaware Statutory Trust or DST is a entity that is formed in the state of Delaware and then it’s able to have a series structure just like a series LLC. With all of the advantage.

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Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

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