Unless you are going to get a sizable cut on this and willing to take on all the potential liabilities associated with running an STR and having strangers in and out of your property, including being responsible for any permitting that might be required, not sure why you would do it.  

The liability from a LLC reduces exposure from assets in the event of a lawsuit.

If PY AGI was over $150,000 ($75,000 for marrieds filing separate returns) must pay the lesser of 110% of the tax shown on the PY return 90% of their CY tax liability Four times a year, 25% of the “required annual payment” for the current year.

@Aaron MoayedIf you are investing in your own name, you will not have an entity with a California nexus.You could also explore non-corporate entities such as land trusts to create an enhanced liability layer around an out-of-state property but still stay away from any California nexus.

I would be concerned about liability, especially since it is in the news and known to be an issue. 

From the CA FTB Website:Series Limited Liability Company (Series LLC)A Series LLC is a new form of LLC that may be formed under the laws of some states.

You can bill +$30 a month for "park sewage"But Well water is too much liability,  Imagine contaminated ground water is found and now +50 new lawsuits come your way.  

I believe that in that case there is no inside liability risk to spread to the beneficiaries.However, i don’t know what would be the risk regarding an outside liability on one of the beneficiary and how his/her interest could be threatened by it.

So I need to have liability insurance for this flip I'm about to start as per my lender, wondering who you guys are using

And there is a lot of liability that falls on you.