LLC questions and taxes

[Stephanie St. Germain]

Hello, 

I have recently been considering a shift in my mindset from long-term rental property in my local market (Charlotte, NC) towards the idea of short-term rental property in an out-of-state market (that is more affordable) for the potential of higher cash flow in the short-term in addition to the long-term appreciation. Couple questions i have regarding setting up and LLC and tax implications:

1. If I set up an LLC, does the LLC need to be set up in the state where I intend to buy the property or can I still create an LLC in North Carolina and set up a business bank account even if I do not end up investing in NC property?

2. Am I able to deduct all related business expenses (mentorship programs, furnishings, depreciation, LLC-related fees) even if i do not generate any income from the business?

3. I’m assuming I will only be able to deduct eligible expenses up to the amount that I owe in taxes; so if I have a lot more expenses than taxes owed, am I able to carry forward those deductible expenses into the next year or will I be losing out on whatever additional expenses I have that surpass the amount of taxes owed? i.e. if I only owe 3k in taxes but have 20k in deductible expenses, will I only be able to deduct up to 3k and lose out on that remaining 17k of expenses that I incurred?