Business Structure & Maximizing Tax Advantages

[James Mckinnon]

Hello Everyone,

I am a new real estate investor. I just bought my first short term rental in Pigeon Forge, TN. Things are going great but I have a couple questions on business structure and maximizing tax advantages.

The two areas I'm wondering about are:

1. Business Structure - How should I structure my business so that I maximize my liability protection and tax advantages? I've read that an LLC may not be the best choice. My homeowners insurance has $1M liability coverage and I am also looking at a umbrella policy. My net worth is $500k. I don't have any employees.

2. Maximizing Tax Advantages - I am interested in using this business to maximize any tax advantages. I would be interested in being able to contribute to a SEP IRA or Self Employed 401K. My goal is to get 3 to 4 of these cabins in the next few years. The cabins are 5 hours from my house so at that point I would be interested in having a fuel efficient business vehicle. What are some other tips now for maximizing tax advantages? How will my business structure effect that? WIll my short term rental qualify as a business and if so is that good or bad for trying to minimize taxes?

Thanks so much for all your help.