Is it possible to create an LLC for a husband and wife and not pay self-employment taxes?

[William B.]

Hi BPers-

I want to create a business name that is separate from my wife's and my name.  I primarily want this to serve two functions - 1) so our tenants do not know that we are the 'big, bad landlord' and 2) be able use this name to grow a property management business in the future.  

The two options I've looked into-LLC or DBA- both appear to have some drawbacks. The LLC, if set up as a property management company, appears to make our rental income further taxable through self-employment taxes. The DBA doesn't allow us to have the sole right to use our business name.

Is there a way to set up an LLC so that our rental income isn't further taxable? If not, is there some other option or entity that would allow us to be the only business to use our business name? Right now, we aren't concerned about asset protection through the LLC-we have an umbrella policy and only own a few properties.

Thanks in advance for your help!