You’re from California. You know that your state loves to tax, especially when it comes to LLCs. Knowing how to avoid California’s franchise tax is an important part of your asset protection strategy. You have to pay $800 per year and franchise tax per LLC. This is true even if you live in California and you have a Texas LLC that only owns Texas property. You could still be subject to the franchise taxes. One solution to this may be the Delaware Statutory Trust.The Delaware statutory trust is a trust structure and assets is not subject to the franchise taxes as the rules currently are defined by the franchise tax board. The Delaware Statutory Trust or DST is an entity that is formed in the state of Delaware and can have a series structure just like a series LLC.