I know I will have to report the LLC’s profits but I’m confused as to how to handle the draws with respect to the IRS.

I will say in Upstate NY where all of my section 8 tenants are, if they dont pay their portion I report to their caseworker.

Either way they should be licensed, contact the board and report them. 

Advantages are that you only need to form and pay for the initial series LLC, file one franchise tax report, file one tax return, and pay one franchise tax payment if required by the state the LLC was formed in. 4.

Steve: If you are going to bid on an Ohio Common Pleas Court  foreclosure, the process is pretty safe because the foreclosing lender has to include a "PJR" which is actually a "Preliminary Judicial Report" which is a title report and include a commitment for title insurance should the bidder be successful and the property to be conveyed.This differs from a liquidation auction by a lender, private auctioneer, receiver (other than an actual foreclosure case) where you might be successful but the property has pre existing liens that don't get swept away by the foreclosure case.For your first one of these, get a lawyer to advise you.

The good thing about a collection agency is that it can report the judgment to all three credit reporting agencies.

Don’t be afraid of a scary inspection report.

So, if you aren't licensed you don't want them to report you to the state because I believe the fines can be hefty. 

It looks like no matter what, my actual name will need to be filed on annual report with the NC LLC (even using a registered agent). 

This is one of their biggest advantages as they often bypass the personal liability and credit reporting of traditional loans.