Presumably the multiple member LLC was treated as a partnership...Based on that assumption, the instructions for the 1065 partnership return nicely summarize the rules:"Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.Entities formed as LLCs that are classified as partnerships for federal income tax purposes have the same filing requirements as domestic partnerships."

When you start making exceptions you are no longer following your process. stick to the script.All the best!

I've had a couple of exceptions in this, where the tenant had their own and had requested to use it instead, but that was only once or twice in the past 10 years. 

I rented each room on Airbnb as an STR/MTR, it didn’t surprisingly exceptionally well.

Debt is the worst in the world, except for all of the others. 

Except I already transitioned out of the Navy after a 21 year career in 2023.I live and work in Memphis, TN now with a turnkey company which is a great way to get started.  

We don't allow "deal making" except for in the CLASSIFIEDS forum.

EXCEPT!...

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

The exception being if there is massive appreciation in the way of a remodel or the market in general.You can do your own research to see if what this guy is peddling is of value.