It may be possible to sell the property in your name and purchase in a "disregarded LLC" (meaning it only has one member and elects to be taxed as a sole proprietor so it doesn't file a tax return  and activity is still reported on your personal tax return. 

4) Since we want to be taxed like a sole proprietor/partnership rather than a corporation, we don't have to pay ourselves with a W-2 and withhold taxes right?

- ‘lifestyle’ business – ie simply intended to be run by and to provide an ongoing source of work and income for the proprietors, no clear vision for the long term future?

Are you a sole proprietor for this business or set up like an S Corp?

Anyway, in California, does anyone know what the % of with holding is for a wholesale fee or assignment fee for a sole proprietor?

In the meantime I can tell you what I did since I'm 20+ years ahead of you....My initial rentals were owned in my state as a Sole Proprietor. 

Let me try to explain why you MUST have an LLC.If you are a sole-proprietor (No LLC) and a tenant gets killed because of a faulty oven in your SFH rental, their estate/heirs will sue you for $10 million or more! 

I wish I had kept the sole proprietor money separate from non-rental $ so that I could look back now  more easily determine how profitable I was (or not) each year.  

Hi BP,I just bought my first duplex and wanted to get some advice on whether I should open a business account as a sole proprietor or LLC and what bank accounts I should be considering.

Hi all,Just found this site and am very anxious to explore all it has to offer. I have a quick tax/IRA question. My wife and I own a 4 unit building that we reside in. We are both also self-employed in separate busine...