But if asset protection is a key concern, it’s worth discussing further with your attorney to find a balance that works for you.This has no income tax impact.

Ideally I keep the relationship with the utility companies and then the tenants pay me their split.My two concerns though are that this is not legal and that tenants wouldn't be willing to do this sort of ad hoc split.

The best option for you depends on a number of factors including your exit strategy, any liability concerns and preferred tax treatment.Type of EntityTax TreatmentMain AdvantagesC-CorporationDouble TaxationCorporate tax rates are lowerS-CorporationPass-throughSelf-employment tax savingsLimited Liability Company (LLC)Pass-throughLiability protection and flexibilityFuture Outlook and Recent Tax Law ChangesMost recent tax changes applicable to real estate investors include:The increase in the estate tax exemption to $13.61 million per individual for 2024.

This approach helps them grasp the requirements in advance and provides an opportunity to address any concerns they may have.

At that rate the investments cashflow nicely.One big concern in this model that some investors are still being talked into funding ground up construction.  

I believe the risk of taking away less in our current market to be a concern.

My concern was small single person businesses are subject to robberies which occurred frequently in the area in the early 1980's.The building was built in 1890 and NYC established building codes in the 1920's, and someone owned it all the while passed and my dad offered to purchase it but was beaten to it by a flipper who got it for $23K, and he bought it from the flipper for $25K.

I'm sure there's some anonimity on assets and he owns more than I know about, but he's never raised a concern with someone knowing about his projects. 

Your response to this concern would be much appreciated,  Have a pleasant day.

Concerningly so.