@Anthony AriasIf your LLC is single member LLC (that can be with a spouse), then the entity is "disregarded" for your Federal return.

With a three-member LLC, your options for federal income tax purposes are to (1) have the LLC treated as a partnership, or, (2) have the partnership treated as a corporation.The LLC is still an LLC governed under state law, but for federal income tax purposes, you have to elect how you want your LLC to be taxed.If your LLC will be engaged in an active income business, then the corporation election is usually preferred.  

Just because you speed and don't get caught, doesn't mean you're not breaking the law.Same goes for all the posters here that aren't following the IRS rules, yet claim they've been getting away with it.We've dealt with many contractors over the last 25+ years that want to be paid cash, or have their checks made out to "cash", refuse to sign W-9's, etc - all to avoid paying taxes to the government. 

It's a public forum, choose to follow the advise of posters with great care.Most investors doing rent to own, L/O and contracts have followed old methods for decades, most IMO are behind the times and while they can read things in black and white in federal laws, they don't always understand the intent, even attorneys have trouble in some areas of financial regulations.

This brings to mind one of my favorite quotes from one of my favorite authors:“There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary public interest.

On the government side, I purchased properties having the powers of condemnation and eminent domain.You'll also find that building reg types, fire marshals and other government officials can apply "selective enforcement" just as a cop doesn't give a speeding ticket to the old guy in the truck following the young blonde in the red sports car ahead of him who does get a ticket.

If that is the case for Federal purposes you need to report any income from your rental property on the Schedule E of the 1040.- Regarding Texas, you may want to verify this as I'm not a Texas resident but even though Texas has no income tax it does have a franchise tax.  

By placing his name on the list it ensured Clussive would never be able to close another FHA or VA loan or any other transaction involving the Federal Government, such as a HUD or VA REO sale.Below is a letter from the U.S.

If you do an LLC, you can easily form the LLC, but the operating agreement (the document governing the actions of the LLC) may require some more work or assistance from an attorney.You may want to consider the role you and your brother want to play once the house is owned by the entity.

We were thinking about getting financing with QuickenLoans or NASA federal credit union.