California Residents - Out of State Investing / Partnership

[Sean Brennan]

Hi there, my partner and I, both residents of California, are looking to get our first investment property out of state, specifically in Pennsylvania. We are looking for advice on what entity to form (LLC, DST, etc.) to make sure we avoid any high annual costs, especially the $800 annual tax California has on LLCs. Additionaly, an entity seems advantageous to us to limit liability.

Why Pennsylvania? We have another two partners in Pennsylvania who will assist in finding and managing the property. Our entity will partner with their PA LLC under one parent PA LLC.