STR - Optimal LLC Structure for asset protection and taking title

[Julia Li]

My husband and I are co-buying an investment property with another married couple (our friends) and are planning on using it as our vacation home (taking turns) and running it as a STR. We would like to leverage bonus depreciation to offset against our W2 income. We need some advice on optimal LLC structure (please advise on options):

1) Option A: WY holding LLC with Hawaii Child LLC; take title of the house in Hawaii LLC

2) Option B: WY holding LLC registered as a foreign entity doing business in Hawaii; take title of the house in Wyoming LLC

We would need whatever option we chose to enable us to take advantage of bonus depreciation and depreciate against our W2 income (all 4 of us are W2 earners). I wanted to confirm that owning the property as a LLC partnership (the 4 of us) would still allow us to to offset against our personal W2 income.

Any advice is greatly appreciated!