Help Needed for Taxes and LLC

[Jennifer Wilson]

Hello!

I have a couple questions regarding my LLC and how I should be filing my taxes this year, and in the future. I am a Realtor in Florida and set up my LLC in March for my sales commissions. At the time, I was the only one involved with real estate, so I was the only member of the LLC. Since then, my husband and I have purchased 3 rentals in our personal names, so I added him as an authorized member of my LLC.

Because he is only a member and not a manager, I am confused on how I should be filing for taxes.  Is it a partnership, or should I file as an s-corp?   Also, is there any benefit of him being a manager with a percentage of ownership vs. an authorized member?

On another note, we have paid off one of the rental properties and are looking into putting it under an LLC to protect ourselves. It is my understanding that we will need to create a second LLC as I cannot earn income from commission and rent under the same one. What would be the best way to go about this so that, God forbid something happens, we and our other assets (personal home and rentals) are protected? Would an LLC do that, or do we need to get some type of "umbrella policy?"

I am feeling a little lost with everything, so I appreciate any help I can get! 

Jen 

[John Verduzco]

Jennifer - all great questions and I feel your pain in being "a little lost with everything".  From our personal experience in laboring over decisions on how to title our assets and how to protect them tax efficiently, we have found that each situation is unique and you have to find high quality legal, tax and insurance professionals to help you navigate.  We have found that the decisions are alway business decisions, but to make them you need good honest and thoughtful input from these 3 angles (Legal, Tax, Insurance).  Too much detail to post, but if you PM me, I'll share my experience and you can decide if helpful.  BTW - be careful on taking advice on these topics.  Get 2nd and 3rd opinions when you can.