a multimember LLC must file a partnership return except in community property states. paying a management company means that some of the rent is going to pay their fees but a higher rent to compensate may not be possible. with a short-term rental when substantial services are provided, the profits, if any, are subject to self-employment tax. In some locations that rent may be subject to sales (or similar) tax which would be another filing.
Putting it into an S-Corp may then require each of you to take reasonable salaries that would require the application for and filing of various payroll tax returns and other forms. Losses, if any, would be limited to tax basis. While mortgages count as part of partner/llc member basis in partnerships/LLCs they do not in S-corps. Consult a tax advisor.
