Mortgage Notes & LLC Taxes

[Michael Terry]

Good morning all, 

I have formed an LLC out of state in order to insulate myself when buying mortgage notes. If I put that asset in the name of my LLC and receive payments through it, I am assuming I will have to pay state and federal taxes on it when the time comes.

Are those taxes set up like other small businesses or how does that process work? I plan on getting a tax professional to handle all this, but any color or context I can put to the question would be helpful. 

Cheers.