@cbusa ,
(a) strongly suggest having a discussion with Tax professional and / or an attorney both in the state where the properties are and/ or where the business is established/ incorporated. The properties will generally be under the state law of where situated taxed as instate /sourced income.
(b) The need to file Schedule-E is dependent ( for federal purposes ) on whether the properties are grouped or individual and also on the character of the holding entity. Generally one owner LLCs are considered a disregarded for tax purposes ( based on how it chooses to file its return )
(c) Note that as an active source of income, the PAL ( Passive Activity Limitation ) does not apply -- NOL does apply.
(d) The veil protection/ limitation of liability for an LLC is not as strong as that of a C-Corp but the paperwork for tax filing for an LLC is minimal
Therre are many more ands/ifs/buts and therefore strong suggestion to consultation ( as mentioned above ).
Please feel welcome to ask specific questions here .
pk
