Out of state corporation in California

Asked by: Mark hatterman  — 2 October, 2012

We have an S-Corporation in Hawaii for the purposes of managing rental property. We recently purchased a house in California to rent it out. Do we need to register our Hawaii corporation in California so the corporation can act as “landlord”?

Answered by: admin  — 2 October, 2012


Whenever a company is going to be listed as the owner of a real estate property, the company must be registered in that state where the property is physically located.

With that in mind, you have two possible options:

1) One option is to file your Hawaii-registered S-Corp as a foreign entity in California. This will have your business registered in both states, using the same EIN, bank account, etc. Keep in mind, in California, S-Corps are taxed in a certain way, which you can read about on our research page for S-Corporations.

2) Alternatively, since it’s very common to put a real estate property in its own LLC for asset protection reasons, you could use your corporation to register and own a domestic LLC in California.

And, of course, you might want to consult your accountant to see which of the options would work best with your particular situation.

Ask Incorporation Question
Please enter your full name
Please enter your email address
Please select your phone number
Please select
Please enter text message
Begin Web-Stat code v 6.0