Within the past few months, former City Planner Ian McElwee was one of several city employees to leave or be dismissed from various city departments.

It’s the job of a management company (or a large owner managing their own portfolio) to find those people and give them enough work so they don’t have to worry about feeding their family on a monthly basis (I aim for 50% - 75% of their business but I try to avoid being 100% of their income to avoid employee classification in good ‘ole CA...and also so we don’t ruin their lives if we decide not to use them again).

To give you an insight into how we are thinking to deal with this towards the future when we are growing, is hiring an employee in our team that is going to be managing x amount of apartments.

I won't list them all here, but a few that will point you in the right direction:- Pros: limited liability, estate or asset protection planning, business credibility, property management benefits (I've heard landlords state its easier to put an LLC on the lease form and tell the tenant "you just work for the company" as they'll give you less issues, but I don't know if it's really true), and business growth potential (easier to hire employees and file state/fed reporting forms [940/941] as a corporation).- Cons: increased costs (for filing and maintaining an LLC, for filing separate tax returns if you choose to do so [but don't have to]), depending on your state increased legal fees (you didn't put where you're from, but in some states only attorneys can represent corporations in evictions and small claims court), financing "challenges", insurance "challenges", contract and lease "challenges", not unlimited limited liability (you can still be sued individually), and loss of TBE protection (tennancy by the entireties) if your state recognizes it.If you're doing it for limited liability reasons, you're better off getting a good insurance policy.

If an employee runs over a little old lady crossing the street, while working for your LLC, both the employee and your  LLC could be held liable.

that story of two hotel employees is old as the hills.. in various forms I first heard it during the dot com bubble of 2001.Heres the thing with waiting out markets.Unless your all cash .. in a retreating market or down market the lenders are also retreating and not loaning.And or credit gets very tough especially for investment properties. 

The LLC will own my 20 unit apartment complex and will have no employees. 

The Treasury Regulations state that someone who has acted as the taxpayer’s employee, attorney, accountant, investment banker, real estate agent or broker within two years prior to the date of the closing of the sale of the relinquished property is the agent of the taxpayer and is disqualified to act as the intermediary for that taxpayer.

Really, I am an employee that makes the same amount each month, but because of the international relationship between my employer and me, I am a 1099 instead of a w2.

He's the director of operations for a large general contractor with 52 employees under him at the moment.