LLC taxes. Do i need to open out of state LLC?

[John Voychick]

I have read a lot but am still unsure. 

I live in California,  investing in Florida. 

Which state to register LLC in?

I will be flip and sell and flip and hold. 

I have a regular w2 day job making 90k.

How will LLC help my taxes specifically? In both hold and flip?

In Florida, LLC doesnt seem to add much asset protection.

Thanks for helping a newbie!

[Ryan D.]

LLCs are NOT for tax purposes, they are for liability protection. You will NOT save any money by operating with an LLC, indeed there are startup & operating costs involved (not large), which means having an LLC will actually cost you more than not having one (outside of any liability related issues). You will have to pay an annual filing fee with the secretary of state to keep your LLC current with the state - generally this is some nominal fee on the order of $100/yr. In California this annual fee (called a Franchise Tax) is $800 (the highest in the country by far, hurrah for California) + an addition fee based upon the LLC's income.