Unmarried couple joint venture questions
I've looked through the archives and can't seem to find a thread that answers the questions to my specific situation. My boyfriend and I just bought our first rental property (SFH) cash and the deed is in both of our names. I have a SFH (primary residence) and a lot in my name so I mentioned that we should probably form an LLC so I can protect my assets. Initially he was on board with this but he recently went and created an LLC by himself and wants to quit claim deed the rental property to his LLC and me (or my LLC when I form one).
1. Does it make sense to do this? Do you typically see 2 LLCs co-owning a property?
2. We are just starting out in rental properties so with it being a joint venture I naturally start looking at how the $700 rental income is going to be split. We are going to open a joint bank account and deposit the rent in there. He wants to get paid his half immediately but I think we should keep like $200 of the $700 a month for unforeseen expenses. What do you think?
3. For tax purposes, how would this work? Would it still be considered a partnership if there's 2 separate LLCs co-owning the property? Would it be better or easier to create one LLC for this property? I read in another post that with a partnership the partnership would have to file taxes first and then submit a K-1 form to each partner to file their own taxes.