Proper planning will protect both parties, maximize tax benefits, and make your venture a success.This post does not create a CPA-Client relationship.

Don't ever think that the relationship will protect you.

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

From what I understand, that essentially negates the protection you get from having an LLC.

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.

For your sake I would make sure, if you aren't NNN right now, that you at least have RE taxes protection in your lease.   

Your LLC set up in KS is for legal protection only.

And higher profits can mean more downside protection if a deal goes south.

I don't think that simply having an LLC would protect you from that Bubba the roofer.