Carl
Level 15

Investors & landlords

If you would be the sole owner of the LLC, then it offers no real advantage. In fact, even a multi-member LLC would not offer any real advantage if the only assets the LLC will have are those used to generate passive income; and rental income is passive.

If that's the only reason for this, then forming an LLC has nothing to offer you. Stay away from that and just report your rental income/expneses on SCH E as a part of your personal 1040 tax return. Even if you do form an LLC, all the income is still passive and still ends up reported on SCH E as a part of your 1040 return. All that does is just create another layer of paperwork and accounting that provides no benefit and serves no real purpose.