Establishing an S corp

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Hi there,

Another newbie question. We are newly investing in some properties out of our home state of California. We are being advised that we would have to establish an S Corp in every state where we are investing because of tax implications within that state. Apparently State of Calif will fine you substantially if you are investing in Calif and do not report it or register with the state of Calif. as a business. So therefore would the same be true for other states? Has anyone had this experience?

We are not doing an LLC because it imposes self employment taxes.

Comments and suggestions are welcome.

thanks