Best tax setup for LLC?

[Corinna Gossner]

My husband and I just founded an LLC to hold our first investment property (triplex). I am thinking to elect federal taxation as a sole proprietor (which is possible as a married couple in California). I am a bit unsure though, especially after the tax reform last year. Does anyone have any insight if there is a disadvantage with this election as opposed to taxation as a partnership or S corp?

These are some of the statements I found that made me think single member LLC with taxation as sole proprietor would be best:

- 1031 exchanges are only possible for single member LLCs
- With an S corp taxation I have to pay myself (and my husband?) a salary before taking any money out
- Self employment tax is not due, as the only income of the LLC will be rental income
- If the LLC shows a loss in the first year it will be easier to carry this over to the next year if not taxed as S corp

Thankful for any advice!