They seem to be very expensive and I'm not sure if it's something absolutely necessary or not. 

We have previously tracked all expenses manually in google sheets and produced financials statements manually, also in google sheets.  

Utilities for the Rented HouseDeductible as a rental expense from when the property was placed in service (ready to rent).

However, as curiosity prodded, I looked into the degree that it is prohibitively expensive to consider just filing as a security anyway, irrespective of the pros and cons.Basically, I searched for "what are the costs for registering a security with the SEC" as well as "what are the costs for registering a syndication as a security with the SEC"Most the results produced explained something to the extent that the fee was about 150 bucks per million offered, without any other information on what would validate the explanation that filing a syndication as a security is prohibitively expensive.

To make taxes easier we set up a business checking account and had all the rent paid into that account and all the expenses paid out of that account.

. - WRT income, at a minimum it has to cover all of your costs plus some for unforeseeable expenses.  

Does Baseline give you the option to track expenses without attaching it to a particular property?

Rent payments from the medical LLC are fully deductible as a business expense, while the property-owning LLC will report the rent as taxable income, which can be offset by deductions for expenses like mortgage interest, property taxes, maintenance, and depreciation.To ensure compliance, document how FMV was determined—using market comparisons, an appraisal, or similar data—and draft a formal lease agreement outlining the terms, rent amount, and responsibilities.

When you charge under market rent, the IRS deems that you do not have a profit motive and, therefore, disallows all rental expenses. 

From experience, finding a knowledgeable accountant is key for handling taxes effectively, especially when splitting expenses, claiming deductions, and managing depreciation.