The bank is not required to send a 1098 if the interest they received from you is less than $600 or if the interest is “received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a coborrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals.”You can read the instructions (and exceptions) for the form here:https://www.irs.gov/instructions/i1098Whether or not they send the form, you should still be able to deduct the interest you paid if it’s a valid business expense. 

For those who are new to real estate investing, here's a brief overview of the most frequently used business structures.Corporations: A corporation is a legal entity that is owned by shareholders.

If you try to mix the two different types of users, there is going to be a lot of trouble.You'll have to figure out a way to keep some of your shareholders from moving out there and living permanently.

@Diego MishlerIncome earned through a pass-through entity(Partnership/LLC/S-Corp) do not change the character of the income.If the income earned by the pass-through entity is passive rental income, it will be passive rental income to the partner/member/shareholder.

As a Canadian shareholder in an incorporation you can withdraw dividends which are tax free (except the health tax).

Visited Omaha last spring for the Berkshire Hathaway shareholder's meeting and, naturally, took a few detours to check out some real estate. 

The articles you see are specific to data from REITS (new construction in SOMA for example) who make rental data public for their shareholders--the "10-15% rental drops" headlines you see in the paper get young techie types off the sidelines and into the new construction amenity rich buildings owned by REITS.

Payback to the corp always included interest from Rents and always before dividends are earned by shareholders.

Corporations pay income taxes and then the shareholders pay income taxes on any money withdrawn, as wages or dividends. 

Lastly, since you mentioned one of the borrowers is an LLC, you should note the following exception to the 1098 form: "You need not file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a coborrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals."