LLC or sCorp for investment properties

[Jerry Zigounakis]

Wondering what everyone's experience is starting an LLC or sCorp to purchase your investment properties under? I live in CA, and I am looking to purchase a STR in Big Bear, CA and a LTR outside of CA.

Would it be best to start an LLC or sCorp in CA and deal with the astronomical annual fees? Or could I start it somewhere else, even though I would be conducting most of my business out of CA?

[Sean O'Keefe]

Quote from @Jerry Zigounakis:

Wondering what everyone's experience is starting an LLC or sCorp to purchase your investment properties under? I live in CA, and I am looking to purchase a STR in Big Bear, CA and a LTR outside of CA.

Would it be best to start an LLC or sCorp in CA and deal with the astronomical annual fees? Or could I start it somewhere else, even though I would be conducting most of my business out of CA?

S-Corps are generally for active income (e.g. like real estate agent/flip) and LLCs are generally for passive income (e.g. rental income). 

Based on what you say, the LLC may be the better option. 
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