LLC Formation for a Californian Investing Out of State

[Michael Modesto]

Hi all.

I'd like to get your thoughts on forming an LLC, from folks who have done this before.

After review, I've determined that I want to set up an entity to hold my investment properties to add a layer of protection for my other non-REI assets. Adding a layer of privacy as well, is of high value to me.

I live in California but invest only in out of state properties.  I currently have 1, am in the process of scaling that up to 6-10 over the next 12 months.

My questions:

- Is it advisable to form an LLC in California (with its high fees), or somewhere else, say in Nevada?

- The answer to the first question would affect this because of costs/fees... but when should I form the LLC? My instict is to do it now, before buying the 2nd property... but should I wait until I have 3? 5?

Thanks.

M