CA Resident owning OOS income properties-How to structure entity?

[Keong Kam]

Hello! A question for fellow BP investors!

I am a CA resident and trying to create an LLC to protect my assets in Missouri.

My CPA says I need to create a CA LLC and then register in MO, then transfer MO properties into the LLC.

So,  basically:

1. To create an LLC in CA, there is some fee for this.

2. To register in MO as foreign LLC operating in state, there is fee for this

3. Then there is annual fee to maintain CA LLC and probably also to foreign LLC registration in MO?

4. CA LLC has min $800 franchise tax?

5. My CPA also says CA state taxes on my income from MO LLC for the portion of the difference between MO and CA state tax.

????????????

Seems like cost could quickly mount up!

How are other CA investors with OOS properties structuring the entities? 

I am searching around for real estate/tax attorneys to consult on this, but would really appreciate if someone can share what's working for them.

Thanks-