It may be  law maybe not, but it isn't going to be enforced.Treasury Department Suspends the Enforcement of BOI that Forces Small Businesses to Report Personal Details About Their Owners to the FedsThe U.S.

Liability Protection: An LLC provides legal separation between your personal and rental property assets, which can protect personal assets if a lawsuit arises.

Does that fit your personal criteria for a return you'd like to get on your investment? 

For example, a person can go to  a 10 —-13 week school for dental assistant… finish the course get a certificate and have an immediate job making somewhere around 43k plus.. yeah I know it’s not a ton of money, but it’s a good base especially for folks that don’t want to go to college.

Did your borrowers mention securing your investment with a recorded mortgage or deed of trust, personal guarantees, lender’s title insurance, or anything else?

NOT judging, I am truly curious the mindset's of such persons.

Thank you both for providing context and personal history with the lease option methodology.I did some lease options years ago when I was still investing in residential, and even a couple on commercial property. 

I understand that each person's situation is different and unique and can appreciate the insight you all offered. 

Like Michael mentioned if you are just reporting on schedule E/C on your personal return- a balance sheet isn't required; so full double entry software isn't required (but still helps). 

Understand that the LLC you want to switch to is basically considered 'another person' when it comes to taxes.