Michigan Investment Property LLC and the California FTB

[Mark K.]

Good day to you all.  I recently have entered the world of rental property investing.  My brother who resides in Michigan began a few years ago and now owns 6 rental properties.  I am hoping to follow suit; however, my situation is a bit more unique since I reside in California.  

Ideally I want to place each property I purchase into an independent LLC. The problem is that according to what I have read on California's FTB website, although my LLC property is out of state, I am still considered as "doing business" in California thus on the hook for the $800 LLC tax.

I have received mixed advice from both legal reps and CPA's regarding this so now I am turning to BP forum.  

Am I obliged to pay the Ca tax for an out of state property that has been placed into a LLC?

If so, is there a strategy to minimize my tax obligation while maximizing my liability protection?

Thank you kindly,

Mark