Should I put 8 unit rental in LLC?

[Danielle M.]

Hello,

5 years experience with single families and a duplex BRRR strategy but never used a LLC. Looking at buying a 8 unit. Live in CA but have rentals in TN.

Here are my questions:

1. Should I put the 8 unit in a LLC? Are there any drawbacks? For this particular property, it seems like I should due to the size. Do I need a lawyer for this or can I do online?

2. I have a duplex I am BRRRRing. It is in cash in my name. Should I put it into a the same LLC as the 8 unit and then can I do a cash out refi by personally guaranteeing the loan even if it is in the LLC?

My spouse and partner in many of the properties is concerned that the cash out refi could be a taxable distribution from the LLC? Is that possible if anyone knows about tax.

Thanks, 

Danielle