Open an LLC out-of-state fees

[Makhwarand Khan]

Hello Investors, I'm looking at investing out-of-state since properties here in Massachusetts are very expensive and gives me a poor ROI. I'm aware that I don't need an entity to receive tax deductions on rentals. However, since I know I'll be investing for the long run, I'm finding that having an entity will be necessary to protect my assets. I'm also confused on how the fees and taxes will work if I have an entity in a different state than where I live. For example, I buy a few properties in Texas. I establish an LLC in Texas to safeguard my assets. However during this time I'm living in Massachusetts. In this case, will I be required to register my Texas LLC in Massachusetts and pay both Texas and Massachusetts' state filing fees? Do I have to pay Massachusetts state taxes on the profits I generate in my Texas LLC, along with Texas' own state taxes?