We are working with a consultant on staffing and regulations. 

Airtight process procedures and checklists must be in place to ensure the steps are all followed the same way every time (scalability) and that the relevant parties are apprised of the process as it moves down the assembly line. 

And it's worked for generations and the wealthy for a very long time because mutual insurance companies understand the human lifecycle quite well (law of large numbers), they're well regulated, make safe and sound investments and in several cases have paid out dividends consecutively for over 150 years (Mass Mutual, Lafayette Life, etc).

Because of the location, this is permissible per county regulations, even though the residential neighbors are having a tough time with it.So, we have to move and convert our home into a STR (we cannot sell the property because it is 2 homes and an elderly family member lives in the other home and cannot move).  

The subsequent item you reference is "self-employment income" for purposes of self employment tax under Sec. 1402. 401k has its own definitions and regulations, which are related to - but independent of - those referenced. 

Water Supply Company is private and owner doesn't have money to build more wells and is already in some big dispute with state regulators.   

Different strategies call for different procedures.

I also disagree with Michael, due to some language in the annual revenue procedures that discusses what we can do with depreciation changes. 

Is property management regulated by the real estate commission in CO? 

You'll need a lawyer to generate the paperwork and filings and experienced enough to give you general advice on the process, help you establish appropriate compliance and back office procedures.