Just providing some clarification, along with a "heads up" on possible issues you may experience down the road.
I formed an LLC in Texas with my wife
The above statement conflicts with the statement in your 2nd post which reads;
With IRS this company is registered as sole member.
So you did not form any type of company with your spouse, or anyone else. What you have is a single member LLC that you, and you alone are the owner of. This changing nothing what-so-ever in how you report your rental income/expenses on your tax return. If rental property is the only thing the LLC will own, then you have no need to file SCH C at all. All rental income/expenses continues to be reported on SCH E, as you have been doing in prior years.
The above is assuming you do not/did not file IRS form 2553 to have your LLC treated "like an S-Corp", or IRS form 8832 to have your LLC treated "like a C-Corp" *for tax purposes only*.
Now for the heads-up on potential problems this could cause.
If you have a mortgage on the property (I assume you do) then typically you can't change anything on the deed for that property as registered with your county, without the written permission of the lender. Also typically, lenders will not give that permission either. Do so, could very well be in violation of your mortgage terms. While the lender may not find out about it immediately, they will most definitely find out when they (or the excrow account manager) receives your property tax bill and/or property insurance bill. When the lender files out, they typically give you a fixed period of time (usually 30 days) to "make it right" or pay the full balance of the mortgage immediately.
Also, when you change the ownership of the property you'll need to notify the property insurance provider if you want to keep your property insurance valid.
Now most folks do this because of what they refer to as "added protection" it provides if a tenant sues the landlord. Being the owner of 3 rental properties myself, it makes no sense for me to jump through hoops, when it;s a whole lot cheaper and a lot less hassle to just increase my liability coverage from the standard $300K to a full $1M. The insurance increase for the added liability coverage was around $150 a year. A one time deal and I'm done with it.
