LLC for Rental Unit within Primary Residence?

[Jon Rausch]

Hi all.  First post, and looking forward to giving back to the community once I acquire more knowledge myself.

We rent out 25% of our primary residence to a long-term tenant. I am wondering if it's 1) possible and 2) beneficial to put that rental into an LLC? For one, it could allow me to have an I-401K plan? Liability benefits? Tax benefits?

Thanks in advance for your input!