All Forum Posts by: JL C.

@Natalie Vane 

@Natalie Schanne Thank you for the response. As I understand it, because we do not live in a community property state, our LLC will be taxed as a partnership, requiring the K1 form. However, I didn't know that use of that form reduced audit risk. That is good news! I have a pretty good grasp of the issues re: no comingling of funds and running the business like a business. The parts I'm still unclear on are whether or not the member-managed vs. manager-managed designation (would still be just us making the decisions either way - no other members or outside managers) and the at-will vs. term designation has any impact on liability or taxes.

Thanks again for your help. I appreciate it.

We (husband and wife) are about to acquire rental property and form our first LLC. From an asset protection perspective and a tax perspective, what are the advantages and disadvantages of choosing a member-managed vs. manager-managed? Does it really matter? Also, what are the asset protection/tax advantages and disadvantages of choosing an "at will" (or perpetual) vs. a "term" (specified number of years)? On a separate note, I want to say a big "thank you" to everyone who posts on these forums. I'm new to the site and have learned a lot already. Also, please forgive me if this posted more than once. I tried multiple times on my laptop and it would freeze up every time and apparently did not post. So now I'm attempting to post from my phone. Thank you in advance for any assistance you can provide.