The appointment of a Chapter 11 trustee should better serve creditors, shareholders, and the public interest by promoting efficiency, effectiveness, and transparency, traits that may have been lost by current management.

As a legal matter, I would say that there are ways to hold the shareholder liable other than piercing the veil. 

But IRS Instruction says "You need not file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a coborrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals."

@Alec Sithong: There are two approaches:(1) Borrow from your existing 401K (loan) and invest in anything (including C Corp stock) and pay back the loan as per its terms --- not always recommended(2) Start a legitimate business (generally as a C-Corp), start a 401K plan for the business, rollover existing 401K, have a 401K buy the private shares of this business (401K plan become a shareholder of the business).

Their families tend to keep funds in there when the LP shareholder parent passes away.

If the allowable time under Texas law has expired, title may be vested in either a majority of the surviving members of the last board of directors or the last shareholders of the LLC. 

As long as the REIT shareholders are earning about 10%/year on their investment, they're not going to worry about the exact details.

Yeah I want to expand my portfolio to more non-STRs but want to know if I reach the hour requirements in my non-STR portfolio, would being self employed, paying myself a W2 salary (but most of my income is from shareholder distributions be an issue? 

Anyone know offhand if a CA resident is one of two shareholders of a Texas LLC holding Texas commercial property, does the CA resident incur the minimum $800 CA LLC tax fee?

If the LLC owner is an eligible S Corporation shareholder, then yes, you can probably make an election to be taxed as an S Corporation.Partnerships are complicated, and you would want to seek advice from a CPA well versed in partnership taxation.