What benefit is there for you to put the property in an LLC?
If "we" form an LLC, it's a multi-member LLC. Period. A single member LLC can only have one owner. There could be some issues with transferring a property owned by an individual, to an LLC too. For example, if there's a mortgage on the property I doubt the mortgage holder will allow a change in ownership without incurring the cost of a new loan/refinance in the name of the LLC, as doing that would probably violate the terms of the mortgage making the outstanding balance due immediately when the lender finds out. They will find out too, when the escrowed insurance and property taxes come due. Not paying "could" result in foreclosure on the property too. Another potential problem area is with the insurance. If the property is insured to the lender and individual and there's a claim, the insurance may be able to get out of paying since the individual is not named on the deed as an owner. If the property is issued as a 2nd home, yet it's actually a rental, then the property is not being used for it's insured purpose. Another way insurance can get out of paying. Note that my samples have nothing to do with taxes either.
If this is rental property, putting it into an LLC changes nothing for taxes. It still gets reported on SCH E and nothing concerning the rental property is reported on SCH C. With a multi-member LLC, the data on the K-1's issued will still end up on SCH E of the personal return.
