However, if you use the holding company approach, the holding LLC will be treated as the partnership entity (since it is owned by the two of you), while the single-member LLCs under it can be disregarded for tax purposes.

Because the Wyoming LLC is the sole member of the property LLCs they are disregarded entities and do not file their own tax return.

Regarding the property management single-member LLC, is it a disregarded entity and did you have to use an EIN to open the bank accounts? 

And if your LLC currently is disregarded (meaning it does not file it's own tax return and all activity of the property is reported on your personal return) then you are the real tax payer.

It sounds to me like you are careful to get information from people who are giving you the type of advise that you want to hear, and disregarding information that is contrary to what you are trying to do.Wholesaling CAN be done legally, however I would wager that easily 90% of wholesalers are in violation of the law when they do it. 

Rental Real EstateGenerally LLCs that are either taxed as partnerships or as disregarded for tax purposes are ideal.

@Avery Moore From a tax perspective, purchasing properties through your LLC won’t necessarily change your tax liability, as the IRS often treats single-member LLCs as “disregarded entities,” meaning the income and expenses flow through to your personal tax return.

Hi James, based on your house-hacking strategy and the goal of maintaining easy access to equity while maximizing asset protection and tax efficiency, establishing an LLC—particularly a single-member LLC (disregarded entity)—tends to align closely with what you're exploring.

If entities are disregarded, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately.

If entities are disregarded, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately.