Are there tax benefits to an LLC, or is it just for the liability protection?

Soft surfaces are fine for good tenants but my philosophy has always been to over-protect everything if it's going to be a rental.  

For additional protection, I would like to have it under an LLC.

This is my first experience with new construction and i'm not sure how we should properly protect our equity from lawsuits in this situation.

If we flip, it's a non-issue.And, sounds like an LLC (for REI purposes) will only serve as a legal protection entity against my wife and I; there are no taxable benefits we can take advantage of.

Good luck on getting them to admit and pay for their mistakes.They will just come back and say it's the owners responsibility to research and accept the tenant and risk or not.That is why you put in hurdles as an owner for protection depending on who the tenant is. 

At what point should I form an LLC or something similar to help protect my family and my future investments? 

I have done a little research but heres what ive gathered: -They are commercial loans, so they will need to be lended to my LLC but with me and my wife  protecting them with our assets -It is a different process to qualify for a commercial loan -it does not hit my personal credit, as its a loan to my business, im sure theres some impact if we were to default -It can cover all three properties, as if it were one, while still giving me the ability to sell one if need be. 

Tenants could scream that you were responsible for protecting them and you let them down.

Long term hold, arm chair investing , flipping ...what is it you desire to do..My advice is follow any path of interest that has the highest wage.