@stephgriggs18 , from your post it is not clear what you are trying to achieve.
(a) Partnership would require you toi file a partnership return ( TurboTax Business ), issue K-1 to each partner for pass through tax liabilities etc. and you still have to file your own return recognizing any gains / losses from renting out your old home in CO. Also some of the tax laws may be different between a partnership constituted under the state law ( CO or NV ) It can rapidly get complicated.
(b) An LLC ( again under state law ) is generally allowed to be a disregarded entity, does enjoy some protection fro m claims , you still file a schedule-E for rental income and a Schedule-C covering any self-employment income. It does however offer some limited protection from renter suits but the veil of protection is not as robust as that in the case of C-Corp.
(c) the fact that you are going to use a dedicated portion of the rental / income property for personal use has nothing to do with actual rental activity --- it is NOT personal use of rental property ( assuming that the rest of the property is always available for income generation ( even if in between rental ).
I don't know if this helps you enough but I would strongly suggest a discussion with a Tax attorney before you decide on the type of entity. you wish to own.
Is there more I can do for you ?
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