For full asset protection a WY or DE LLC can hold the state LLC, so your info is not open to the public.

I reviewed this with my cpa on an asset and was told basically when we do sell it and say we took $100k depreciation we would pay taxes on that money we took as depreciation.

Top 5 Key Assets -Detailed Market Analysis of Mobile, AL1.

Obviously you need to take into account tenant landlord laws, if you are investing in Middle America it seems to me that there are many opportunities for double digit cash on cash returns.

Assets identified in this study include:Appliances: Oven/range, dishwasher, refrigerator, washer/dryer, microwaveElectrical and communication systems: TV connections and dedicated equipment outletsCabinetry and CountertopsDecorative light fixtures: Sconces, pendant fixtures, chandeliersInterior Finishes: Crown molding, wood panel wall covering, window treatments8.20% of the total depreciable basis was classified as 15-year class life.

Through observing what many of these out of state or passive real estate investors (your most likely client base)  prioritize in these forums two items that jump out are avoidance of major capex repairs and asset protection.

To answer your question, the advantage the GP has is control, and the ability to gain wealth from their equity position (hopefully not so much for asset management fees) by selling at a big gain.  

In Columbus, I own assets that A-class areas where it is not cashflow positive but I have since used other strategies and taken hits because of the appreciation factor.

Here is an opinion: The increasing US deficit and US rate cuts will cause asset valuations to rise. 

Who should I be talking to for the best advice on structuring these entities to minimize taxes, protect my assets, and maximize my investment strategy?