I reside in California but want to purchase rental property in Illinois. First, can the LLC be organized in IL to avoid paying the annual franchise tax fee of $800 in CA? Second, after I create an LLC in IL, and post purchase(s) of property in IL I assume that the rental income passes through to me if I am the only owner? Meaning I would claim the rental profit & depreciation on my yearly personal taxes? Do I need to notify California regarding the property income? 3) bank that makes all mortgage payments is in IL, however I reside in CA do I still owe a foreign entity tax of $800/year? Thanks again!