I never liked to incorporate things like that into business projections for other industries, but the real estate and housing aspect of it makes this situation different. 

I incorporated the cost to pump the sewer into the maintenance allocation since it is a biannual expense. 

The "undesirable for incorporation" comment in the wikipedia article is likely to change in the next decade or so IMO.  

As such, a corporation whose primary income is passive is in-eligable for the small business tax rate and will pay income tax at the highest corporate rate.Trusts are another beast altogether and while they have a useful place in wealth management and distribution to family, you are not going to need one starting out.What I would advise is that you create a bullet list of your near, mid and longer term business objectives and then sit down with an account who specializes in business and real estate to create a roadmap for your business growth .... this will identify whether it makes sense to incorporate at the outset and, if not, when it would be appropriate and how things should be handled in the interim to mitigate the taxable event at the time assets are rolled-over into a corporation.

It does require some time for classes and preparing for the exam in my already busy schedule (director in corporate America and father of 3 boys).  

But first and foremost I spent +23 years in corporate America in senior management roles providing logistics services to Fortune 500 companies globally.

Telling a person that they should just utilize insurance instead of incorporating?

I do regret asking the questions the way I did without thinking too much of it because the tenant seemed very focused and motivated to rent the property, I thought it wouldn't be a big deal but boy was I wrong, people are very unique.I will definetly incorporate Sue's question into my applications in the future.

Our lawyer already had a lease incorporating lessons they have learned from 25 years in the local market, plus we were able to provide input to add a few things we wanted in there.

Just a thought, though - would it behoove you somehow to refinance your mortgage and incorporate the second mortgage into it?