Hey Everyone:
I just purchased my first single-family home in South Florida. I have two spare bedrooms and I am having a contractor install a door for a separate entrance so that I can lease out one of the bedrooms to a tenant and start my house hack! My main question right now involves forming an entity and I just want to confirm I've come to the right conclusion here. I'm in the middle of reading "The Book on Tax Strategies for the Savvy Real Estate Investor" and I've also listened to "The House Hacking Strategy" on audiobook. I currently do not have any tenants but I will be incurring expenses for renovations and office supplies that I will need to run my House Hacking business. The conclusion I have come to is that it is not currently worth it or perhaps too soon to create an LLC to run my House Hacking business for right now considering the LLC formation won't avail me to any added asset protection since it will be an owner-occupied house hack rather than a true rental property and that I can take the same deductions involving my business expenses on my personal tax returns as I would through an LLC (Chapter 2 of "Tax Strategies" discusses this).
I just want to make sure I'm not overlooking any other possible benefits from skipping the LLC formation for now and not having a business bank account to directly pay for my expenses. Any insight/advice would be welcome and appreciated!
Thanks,
James K.
