Often clients will form a JV or record their share of income appropriately.  

You are taxed twice if you form a C-corporation.

We will eventually find that person to form a long term relationship with.

We have over 2m in assets (stocks and property) but this is not easily liquidated form a tax perspective. 

There seems to be an endless supply of investors who will buy on pure speculation.To me, the most annoying - and I see this pretty often - is properties priced against pro-forma rents which do not take Hayward rent control into account. 

Here's the mistake they end up making:  They partner with friends and family...because they know them, and their new partner takes the "I always wanted to get into REI...so let's do it together" approach...too.There are three reasons, and ONLY 3 reasons to form a partnership, and any one of the three will do:1 - The partners each do what the other partners CAN'T do.2 - The partners each do what the other partners DON'T WANT to do.           ...and the most important, and least understood, and I believe the #1 reason why partnerships fail,...3 - The partners each do what the other partners SHOULDN'T do.

Note that nowadays there is really no good reason to form a partnership instead of a Limited Liability Company.

Any other way to form a non-LLC business entity for protection that would be less expensive?

Let's assume for illustration purposes that the taxable LLC and the self-directed IRA form a new LLC with each being a member. 

THEN from that form a K-1 is generated for each partner.