Home Academy Why is the DST Ideal for CA Residents and Investors? Why is the DST Ideal for CA Residents and Investors? The reason the DST is ideal for California residents is it avoids the $800 a year Franchise Tax that California charges LLCs. Since the structure is a Trust and not an LLC, it does not trigger the Franchise tax. If you own multiple LLCs to hold multiple properties, the yearly Franchise tax adds up t... Read More.