Rental property schedule E

[Carl]

In Hawaii, which taxes personal income, it does not matter if you have rental property in partnership. LLC, or anything else, or nothing at all. In addition to that personal income tax, you also pay a GET tax (General Excise Tax) on the "gross" rental income before any deductions. So in HI, they get you coming "and" going. Even if your rental property operates at a loss (as most do on paper at tax time) you'll pay the GET tax on gross rental income before one single penny is deducted from it.

I'm of the impression that for those states that tax personal income, the more taxes  you pay the less the citizens of that state get for their money.

[Anonymous_]

In California, an LLC is required to pay $800 annually whether or not it has gross income while in Florida, residential rental leases of 6 months or less are subject to state sales tax. In most instances, the fees are probably passed on to the renters.

Regardless, injecting another entity into the mix for one rental property (absent exigent circumstances) serves to increase administrative costs and effort.