Best Business Entity to Create when House Hacking

[Tim Cadieux]

I recently purchased my first two-family house where I am occupying one unit and inherited a tenant in the other unit. I believe it's in my best interest to create a business entity (LLC, sole proprietorship, etc.) for tax advantages as well as limiting liability. What are the pros and cons of each type of business entity for my house hacking situation, and what do you think is the best overall entity to form in my case? Also is there a specific type of bank account that is better to open up for the purpose of collecting rent and tracking expenses?