Hold out of state properties in Land Trust and LLC

[Jesse Zhu]

After reading posts after posts of land trust, LLC and asset protection, etc, my head is spinning. So I thought I'd start a new discussion on my specific situation and solutions.

I am closing five out of state REO properties, spread out in different states (IN, OH, MI, TX and AR) in two weeks. This is my first investment deal, I plan to sell them seller-financing, sell notes or outright for cash asap. I am thinking of holding them in land trusts with LLC (or S Corp) as the beneficiary for identity and liability protection.

Can the LLC be formed in out states such as Nevada, Wyoming or Delaware for less cost or it must be CA LLC because I live here? I've received different advice. One attorney suggests it's better to form my LLC in CA as CA is cracking down on out of state LLC, while another investor suggests forming a LLC in another State with less cost and using it just as holding entity (not operating entity). Also is single member LLC considered disregarded entity, hence losing the liability protection? Again I have limited understanding of business entity and asset protection, and might not even be asking the right questions. Any suggestion, advice or thoughts are appreciated.