We historically have filed the income as a sole proprietor on Schedule E.

@John Mark PollardKeep in mind sole proprietors are not subject to the TN F&E tax while SMLLCs are.That said, there are several F&E exemptions available especially for those who hold TN rental real estate in an LLC.Talk to you tax pro. 

The only other issue you want to watch out for is to make sure that single member LLC elects to be taxed as a sole proprietor. 

Realtors are sole proprietors - and they carry their own load. 

Remember 1031 is only a federal statute that happens to be accepted by most states (except PA).There are LLCs that are single member and multi member and some that choose to file their taxes as a sole proprietor or partnership or even LLCs that file as an S corp. 

Start as a sole proprietor as outlined in your county.

But, If the LLC is a disregarded entity (meaning that its only members are you and your wife, you file a joint personal tax return, and the LLC is taxed as a sole proprietor so it doesn't file it's own tax return) then you can sell as you and your wife and purchase as that LLC anyway.The key is that the tax payer has to be the same for the old property and the new property in a 1031. 

This is also required where you are paying an LLC or sole proprietor (plumber, electrician) who are pass throughs, regardless of by check or cash.I would not put much faith in the "you'll never be audited, and if you do you they are great people!"

@Brandon Chidester I'm an Airbnb novice, from the standpoint of both a consumer and a proprietor. 

As a sole proprietor, I'm looking to scale my real estate business and protect my personal asset exposure, does anyone have insight on whether I should purchase my next Muli-family either through a limited hold co. or should I incorporate?