Benefits of Not Forming an LLC

[Juan Pablo Murillo]

Hello BPers,

This past 2018 I purchased two rental properties under my name. The earnings are under an LLC after filing a quitclaim deed.

I'm curious if there are any tax benefits of not renting your properties under an LLC and renting them out as self-employed.

What has your experience been as you've grown your portfolio?

Thanks

[Eamonn McElroy]

@Juan Pablo Murillo

There is zero difference for federal purposes between holding your properties in a single-member LLC taxed as a disregarded entity vs holding them directly.

Possible state and local tax differences.