To form or not to form. That is the question

[Brendan Illies]

Hello! As I begin my SFR journey I'm wondering whether I should form an LLC or other legal entity that would help protect my personal assets and/or provide tax benefits. There also seems to be a non-insignificant cost with setup and maintenance of legal entities that could price out a beginner like me. Setting up an entity is not a show-stopper for me, but I want to make sure that I'm going down a path that will ensure safety for my family if something were to happen.

LLC

Protect personal assets and tax benefits due to pass through income. There's also the "due on sale" clause which doesn't seem to be in effect circa 2017 for conventional loans. Let me know if I'm wrong here.

S Corp

Great tax savings due to passthrough income and other benefits. Doesn't seem like my cup of tea because I don't intend to exit my first couple of deals within the same year.

Let me know any thoughts or if there's another entity that I should consider!