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Business Formation Guide
protectionUpdated 2026-03-30

Can an LLC Own Real Estate in California?

Yes. A California LLC can own, hold, and manage real property in its own name. The LLC is a separate legal entity under Cal. Corp. Code § 17701.01 with full capacity to acquire and convey real estate. This structure provides liability protection—creditors cannot reach the property to satisfy members' personal debts, and property claims generally do not affect members' personal assets.

Formation Requirements

Before purchasing real estate, your LLC must be properly registered with the California Secretary of State through an Articles of Organization filing. California requires a written operating agreement under Cal. Corp. Code § 17701.10, even for single-member LLCs. The operating agreement should specify decision-making authority for property transactions, capital contributions, and profit/loss allocation.

Taking Title

Real property must be titled in the LLC's legal name on the deed—for example, "ABC LLC, a California Limited Liability Company." Record the deed with the county recorder using the LLC's exact registered name. This ensures the property is legally owned by the entity, not individuals, preserving liability protection.

Obtain an Employer Identification Number (EIN) from the IRS before closing. Lenders require this for financing and title purposes.

Community Property Consideration

California is a community property state. If married members contribute community property to the LLC or the LLC acquires property with community funds, community property laws may apply to ownership interests. Consult a tax professional regarding characterization and future transfers.

Liability Protection

Holding real estate in an LLC separates personal liability from business liability. California recognizes charging order protection under Cal. Corp. Code § 17705.03, limiting creditors' remedies to charging orders against distributions rather than forced property sales.

Next Steps

  1. File Articles of Organization with the California Secretary of State
  2. Draft a written operating agreement addressing real estate management authority
  3. Obtain an EIN from the IRS
  4. Consult a real estate attorney before taking title
  5. Record the deed in the county recorder's office in the LLC's name

This is general information, not legal advice. Consult a California attorney for your specific situation.