LLC address + mail forwarding

Miscellaneous
1

Hi,

I will soon be inheriting some mineral rights and they will be transferred to an LLC I recently setup this year. I’ve ran into some challenges and am looking for advice.

The interests and the operators (there are 40) are all in Texas and I live in Ca. I setup the LLC in Texas to avoid state income tax and the extra IRS paperwork. But I’m having a difficult time finding a virtual office address with dependable mail forwarding for the LLC.

I have been cautioned by the estate that I must have a dependable mail forwarding service as I will be receiving a high volume of mail and time sensitive documents. But most of these office/address providers seem sketchy based on the reviews. And I personally had a nightmare experience for the last 6 months with one of the most popular names in the industry. I could not receive mail for 6 months! I’ve just cancelled my contract and am looking for a new address provider now.

So, I’m wondering if anybody else has been in a similar situation and can offer some advice. I’ve done so much research, I can’t believe how difficult this has become. I just need a virtual address service with dependable mail forwarding, an address which can also be used to open a business bank account.

Or maybe there is another solution I haven’t thought of? Any advice would be appreciated.

2

You will likely need a registered service agent with a physical address to be compliant with LLC laws in Texas. These companies may offer mail forwarding services but that can get pricy. Visit with a Texas attorney about filing in the various counties the best address. I suspect that listing your CA address would be fine for county land record filings and for property taxes. Again, pay a Texas attorney for that advice.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship. Not licensed in Texas.

3

You should also consult your CPA about issues surrounding state income tax. For an LLC, you have to elect whether to be treated as a partnership or corporate entity, which has personal income tax implications. A single-member LLC is generally treated as a pass-through entity and the income is directly reported on your individual federal tax return and I would expect that to flow through to your CA tax return. The LLC will also need to file annual Texas Franchise Tax report which your CPA can do.