LLC as Professional status?

[Adam Collopy]

I own one rental property at this point and setting it up as an LLC for a tax shelter which I'm doing through Legal Zoom.
Legal Zoom called me and said they want to know because I'm in the state of California, do I want to classify this and set it up as I'm a "Professional?"
I currently have an expired real estate license, but I'm renewing it and should be valid in the next couple months. Legal Zoom said to call the DRE Licensing board to help me answer this question, but I cannot get a hold of anyone worth speaking to.
Any suggestions? Just file as professional since I'll have a license soon?

[Mitch Kronowit]

Originally posted by Adam Collopy:

I own one rental property at this point and setting it up as an LLC for a tax shelter which I'm doing through Legal Zoom.

I'm not sure what any of this means. Simply placing a rental property into an LLC doesn't make it any more of a tax shelter than keeping it in your own name. The purpose for placing it into an LLC is to help shield for personal assets from the potential liabilities of the rental.

I'm not sure what this means either. Some professionals, such as doctors, attorneys, architects, etc. set up limited liability entities for their practice, which requires a license, but I haven't heard this being used for a real estate investor. I can see placing a real estate brokerage into an LLC, but for your own rental property, there is no license required, so you don't need a "professional" entity.