LLP or No LLP

[Kyle Westerman]

We bought our property back in January. Our goal is to buy a property a year so I thought it was a good idea to open a LLP to manage said properties.

recently we discussed this with an accountant and he said there weren’t tax benefits to this right now.   He said we’d have to do schedule k rather than schedule e. The property is a 2nd home for us. I planned to move it into LLP after a year due to Freddie Mac restrictions.

I've done my own research and seems the rates are worse then what I'd get as a 2nd home for LLP. I'm leaning towards getting rid of LLP we opened. We have the umbrella insurance to cover home based on the research from this forum. Right now I think it's a good idea so we can claim the rental revenue as income.

So I’m looking for advice from experienced investors. Please let me know your thoughts.