BiggerPockets

You would have to register the LLC in whichever state you are doing business in because it is a legal business entity. The Land Trust in and of itself is only a means to shield your name from the public record and when combined with an LLC (preferably two) makes it very difficult for someone to sue you.

You would have to pay the initial costs to set up the LLC in the home state and then you would have to pay a foreign filing fee to register the LLC in the state you want to conduct business. Also, just because a state doesn't have income tax does not mean you are exempt from paying a business tax on the LLC. Tennessee is also a zero income tax state but they charge $300 annually for LLC's. You would have to check with whichever state you are looking to conduct business in.

Having an LLC in one state and doing business with it (having the property owned in another state, as example) defeats the entire purpose of having an LLC which is a layer of asset protection. You MUST either have the entity in the state in which the property is located or at least register a foreign entity in the state the proeprty exists.

Failure to do so will open the doors for lawsuites and cause other problems such as the one Rich mentioned.