Newb questions on taxation for PM LLC

[Mark Updegraff]

So, I'm currently operating as an LLC with rental income being passed through. I'm interested in partnering up with a friend to start a PM company that will manage my assets as well as be open to take on additional clients.

My thinking is that I'll be able to write off the expense of the PM management, but I'm wondering how I will be taxed if I'm a co-member of the PM LLC.

So my first question is this. If the only people involved in the PM company are members of the LLC do we need to anything special tax wise (unemployment etc), or would it also be pass through where we pay are own taxes based off the profits of the PM LLC?

For simplicity, if there are 2 equal equity partners, and one spends more time than the other running the business, how is that accounted for?

Would it be better to keep 100% control of the PM LLC and hire an employee?

I'm open to comments / suggestions. I'm just now starting to brainstorm the best way to be able to step back from the day-to-day operations, yet maintain a high degree of control/quality on the overall management.

Thanks!
Mark
[b]