Location of LLC for turnkey rental properties

[Timothy Smith]

Hello BP Community,

I'm preparing to purchase an out of state turnkey rental property. I realize the merits of this strategy has potential to spark a lively debate on this forum but that is not the focus of this post. I intend to purchase this property under an LLC. My question is, should the LLC be established in my state of residence or in the state of the property itself? Will the location in which the LLC is established have tax implications for the rental income?