Talk to your attorney but from what I've seen most recommend incorporating in your home state.Pull up the LA City code re business tax, I think you'll find that while they base city tax on gross receipts (even if you lose money) there is an exemption if you make less than $1mil/yr.  

However, we already incorporated an LLC and I am inclined to put the property on there?

But the main point everyone misses is how to incorporate your business day to day processes, systems and management into one software. 

You'll have the nicest deck chair on the Titanic.

So incorporating, Fed EIN#, business plan even business bank acct are a few of the first business steps that help you present yourself to private money lenders on a different scale.  

Incorporate it into your branding.

I do believe it is very hard to make a lot of money fast unless you have a lot of capital to throw around or unless you incorporate an active dynamic to your business.

Luckily we have friends and family who are interested in investing through us, but we're a bit stuck trying to sort out the best way to structure our investment vehicle.We've talked to a lawyer and an accountant and the general advice seems to be to incorporate in Canada, and issue shares to investors, however we're not sure what kind of share structure to go with (how many different classes of shares, whether we should issue voting shares as well or just non-voting shares, in what form investors will see returns, etc). 

My questions is, would I need to first start a business initially before creating a buyer list and contacting investors, and should I start a LLC or Incorporation?

My questions is, would I need to first start a business initially before creating a buyer list and contacting investors, and should I start a LLC or Incorporation?