Quote from @Brock Dowis: I’m looking into franchise restaurants.

Remember you are exempt from excise franchise tax if you file an exempt form.This post does not create a CPA-Client relationship.

I go to a shop and pay them, because I don't trust my mechanical skills, even with something as basic as an oil change.Any tax preparer anywhere, including franchises like H&R Block, should be able to prepare your taxes correctly.

Go for the independent PMs, not just a real estate agent offering property management on the side or one of those cookie-cutter franchises (PMI / RPM). 

It’s funny, I actually got started in a market not so different from Wynne..small-town flavor, fewer big-name franchises, but a lot of hidden gems if you know where to poke around.

All rent comes in and goes to the "broker/owner" of the franchise, who then passes it on to the property owners. 

(I used to own some franchises like James talked about.

As a resident, you’ll still need to pay the $800 minimum annual franchise tax to the California Franchise Tax Board (FTB) for any LLC you own, even if it’s set up in another state.What I personally do is have a holding company (LLC) in California that owns my LLCs in other states where I invest.

You could also consider a portfolio of semi-passive investments, like franchises with management in place.

However, California requires foreign registration and the $800 annual franchise tax if the LLC is deemed to be "doing business" there, such as managing operations or signing contracts from California.