And when I compare the expenses generally people are paying higher expenses for the larger properties per unit because they have levels of employees. 

As a W-2 employee with a strong base salary and credit, would I be able to buy the property from my own LLC and get a mortgage in lieu of a Refi if numbers get tight?

I currently am a full time employee, so I do not need the cash to live off of. 

As an employee I won't have the same privelidge.

The applicant is a startup that wants to house a few employees.

At first I worked as an independent contractor, until my boss heard I was having trouble getting a mortgage and was awesome enough to switch me to a salaried employee.

It is almost as if they are my employees. 

When you get a commercial tenants those 2-3 spots will be used by employees of those 1-2 businesses.  

Or do you do it periodically or have an employee do it?

A California LLC must file and pay the minimum $800 LLC fee only any one of the following apply:The LLC is doing business in California (this definition includes if property is located in CA, or if employees are being paid in CA),The LLC is organized in California,The LLC is organized in another state, but registered with the CA SOS, orThe LLC has income from California sourcesIf the owner of the LLC lives in California, he/she will have to pay CA income taxes on the income from the LLC even if the LLC is not organized or doing business in CA, but the LLC as a separate entity is not required to file a CA return unless it falls under one of the above.However, and this may be what David is referring to, if the owner or any other members of the LLC conduct business on behalf of the LLC in California, then the LLC is determined to be "doing business" in California and therefore is required to file and pay the LLC fee.