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Updated 6 months ago, 07/08/2024
Business Income that Doesn't Increase My Personal Income
How should I set up my business structure so that income from my rentals doesn’t increase my personal income reported to the IRS?
I currently have three properties that I purchased in my name as personal residences. I lived in them each for one year and then rented them out. I collect the rent in a business bank account that I opened with a sole proprietorship.
I'm now buying a fourth property under a newly formed LLC.
Should I place the first three properties that I bought in this new LLC?
Should I change my business bank account to the new LLC?
Or should I open a new LLC that acts as a sort of "property management" that collects the rent from all of my other properties and pays out the expenses?
Do I have any other options?