California Resident Out of State Investment Real Estate Investment

[MastaC]

I am a CA resident, but procured a condo in Florida as a real estate investment last year. I rented the condo out and I currently have a positive cash flow. The condo is placed in a typical asset protection structure; title held in a Florida LLC.

Will I be forced to register the LLC in California when I file my Taxes? 

[Carl]

Is this a single-member LLC or multi-member LLC you have in FL? This matters big time for legal reasons outside of taxes I bet you're not even aware of.

[MastaC]

I have a a Single member LLC.

What are the leagal ramifications between having a single member LLC & a multi-member LLC?

[Critter]

First you will report the income on the CA return and pay taxes on the profits.  Next, you do not need to register it in CA. As a single member LLC it is a disregarded entity for income tax purposes and it is simply reported on the Sch E of your federal tax return which then flows to the state.  

If it had been a multi member LLC then you would have to file a Partnership return first and then each partner would be issued  a K-1 to enter on their personal returns.