Deciding where to Incorporate LLC

[Thien Tran]

My partners and I live in California but are looking to purchase / have purchased properties out of state. Should we form an LLC in that respective state or will a CA LLC be enough? We're specifically looking at the Memphis market but wanted to know where it would make the most sense to incorporate. From my understanding, California will charge us that $800 annual fee regardless, but are there specific rules, asset protection and taxation matters that differ by state that I should be consider when deciding on where to incorporate? Thank you in advance.