Choosing the Right Business Entity for Buy & Hold

[Keith Kaufman]

I have found several posts that address the pros and cons of an LLC versus a Land Trust regarding the type of protection they provide. That is not my concern because I believe that if a tenant is injured on my property and that injury is a result of my actions or negligence an good attorney will find a way to go after me and not just the business entity. And therefore carry both property insurance as well as a general umbrella policy. That being said, I am still interested in the tax benefits of structuring my buy and hold rental business in the appropriate business entity. My question is simply are there any tax benefits to holding my properties in an LLC vice holding them in my name? My properties are all out of state, so flying to inspect properties is a business expense. That is straight forward enough, but what about other expenses, i.e. a company car? I will be driving out of state for business as often as flying, if not more, can an LLC, or other business entity, buy a car and deduct it as a business expense? Any thoughts and suggestions are welcome.