LLC or Tenants-in-Common - which is best for 401k funds?

[Lori Lloyd]

What are the pitfalls and advantages to setting up either an LLC vs simple Tenant-in-common ownership when investing 50/50 with a partner where I am using solo 401k funds and the partner is using their own funds? Other than asset protection on the LLC side, I see no other advantage over going with a TIC setup. The cost factor of setting up an LLC is a potentially the biggest drawback of that setup, along with end of year reporting and K1's etc. This would be for a rehab/rent/resell of one property.