Formation of an LLC (location, costs, DIY)

[Sean Matthews]

Hi there,

I am interested in getting passive income via real estate, ie. buying to rent. Nothing spectacular, just to make a start with some money that I've saved up. I read a few articles about opening an LLC in states like Delaware, Nevada and Wyoming as opposed to your home state.

I am based in Texas and initially look to start here, but perhaps later on to move out of state. I don't foresee excessive properties at this stage at all; so 2 questions I have:

1) Is it better to set up in Texas rather than out of state to minimise taxes and also ease of paperwork/etc. 

2) Can I form an LLC myself, using the state website? I see a filing fee of $300, but some companies charge up to $1200 to help set up? Can we do this ourselves?

Thanks

Sean