Multi Member LLC tax designation
Hi Everyone!!
I'm looking for some guidance on what tax designation to elect for a multi member llc.
Currently investing in Airbnb properties with day to day operations run by a management firm. Purchased one, but have offers in to buy 2 more. This would be a total of 3 LLCs that are all multi-member LLC's designated at partnerships for tax entities. Am I making a mistake with this strategy?
My concerns:
Self Employment tax - I think we get out of that because we aren't doing day to day management
Audit - With more LLCs to come, I'm nervous about flagging for auditing.
Looking for friendly guidance.