Recommendations for the type of LLC for out-of-State/Country

[Thilan Ganegedara]

Hello, 

We are a group of 4 people looking to form an LLC for our real-estate investment purposes. Two of the members are located in MI, where the business will be carried out (and where the company will be formed), one member is located in CA and the other in Canada. We read about various options such as regular LLC, S-Corp, proprietorship, etc, to understand pros and cons, mainly our liability, profit distribution and tax implications, in each of these scenarios.

We do understand that we need to consult with a lawyer (probably a CPA as well) to get the final word on this, but quickly wanted to check here to see which option others who have been in a similar scenario (out-of-state and out-of-country members) went with when they formed the company and what the reasoning was. 

Thanks in advance.