Washington State B&O Taxes

[P B]

I recently moved to WA (Vancouver area) and wanted to start investing in property here, mostly residential rentals. It seems that WA has some type of B&O tax that is apposed to anyone doing business in the state. The tax is based on gross receipts (unlike other states), not net income.

I was thinking of setting up on LLC for the investments (mostly for protection and easier management with multiple members). But I'm not sure how this WA tax applies - either for the LLC or even if I just buy the properties myself.

Does anyone know if/how Real Estate income (rental income) gets taxed in WA? What about the sale of investment property? Seems like it could be a huge tax if we sold something since it's based on gross income.

Thanks.