My wife and I are CA residents. We recently acquired a property in Hawaii and would like to transfer the property deed into an LLC. If we open an LLC as a married couple in CA, we can be considered a single member LLC because CA is a community property state. However, Hawaii is not a community property state so if we opened an LLC in HI we’d be considered a multi member LLC and have to file a partnership return.
We are trying to avoid the multi member LLC status and partnership return altogether.
Is it permissible to create a CA LLC that owns the Hawaii property? If so, would this allow us to file our tax return as a SMLLC? Or would this still require a partnership return be filed in HI?
