I don’t want my Operating LLC to be based in CA.

• Because California is so particular about its LLC’s, for our California residents, we would typically set up the Operating Company out of the state in which you reside and that will keep you on the correct side of the tax implications. So you’ll only have to pay that $800 on this one entity and the DST as your holding company will not trigger the franchise tax on each of your investments moving forward (you’ll save a lot of money this way).
• Because of the nature of this CA based Operating LLC which is to be used as a shell (cash-poor), we feel comfortable making this recommendation.