Nashville Investment Property

I am buying a rental property in Nashville, Tennessee. I live in New York and I want to form an LLC soon. Should I form an LLC in New York or Tennessee?

You probably would do better to train in New York. There are only a small annual fee to New York for the LLC, something like $ 50. You would have to pay tax in NY, since you are a resident of New York. Any tax that you could pay in Tennessee would be eligible for credit against taxes NY. On rental properties, unless you have partners, it would be easier to simply file a schedule E of your Form 1040 individual tax return without the expense of setting up the LLC. Suggest you talk to a lawyer about whether the LLC interests would be limited.