And being a HML is a business venture!

I see many first time investors make the mistake of buying in a college town, but not where the students want to live.Business Sprints - You work like a lion in this business.

If your LLC is not doing business in MN, then it would seem to make sense to register it in CA to avoid the need to pay registration fees in 2 states, if you can avoid MN filing fees and requirements. 

That is cool, but for those running a business at any level of scale, not of any significant importance.

My business partner and I are considering starting a real estate consulting practice where we would advise buyers, sellers and investors on the buying and selling process.

The rules are confusing me for whether this is only needed for hiring an individual independent contractor or if it's needed for hiring another business as well. 

Smith, Grantor, hereby sales and warrants unto Tom, LLC, a Limited Liability Company created and existing under and by virtue of the laws of Washington, whose principal place of business is 123 Smith Street, and Mike LLC a Limited liability Company created and existing under and by virtue of the laws of the State of Washington, whose principal address is 456 Jones Street, Seattle Washington 12345, Grabtees, as Tenants in Common.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

But that's no guarantee.And, you can follow all good screening procedures, professionally run your business, and don't get too cozy with your neighbor/tenant.After that, roll the dice. 

I develop for a living and it is easy to buy a piece of land and pay too much because of the cost to develop it.