This is a relatively straightforward question for those of you who are
knowledgable in establishing Limited Liability Companies (LLC's).

We are located in California and intend to conduct all of our business
here in California. However I have found that certain states (namely
Nevada) - have certain tax advantages over establishing the business
in California.

I would like answered the following:

1) Does it make sense to establish the LLC in Nevada if I conduct all
of my business in California? Why or why not.

2) Are there any unforseen complications that could arise in
establishing my LLC in Nevada as opposed to doing so in California?

3) What is the cheapest way to go about establishing the LLC in
Nevada? ( the company is very simple with only two principals and one
outside shareholder so I don't forsee the necessity of any
legal/lawyer involvement)

4) This is a bonus question for a great tip :-) Should we establish a
common & preferred class of stock when we establish the LLC to
distribute equity to future employees or is that something that we
should look at further down the road

I really don't know anything your talking about in your question,
except that is seems like a tri-part question that needs a lot more
research then $9. Researchers  won't take you seriously, read the "How
should I price my question" to get reasonable pricing arrangements.
Good luck with your buisness, and a question for you, do LLCs make any
money? I mean without risk the world would have never changed and
people wouldn't be making money.