The LLC with S-corp election is one business entity and only files one federal tax return.  

With respect to Section 8 tenants, there are positives such as government guarantee rent each month and liability on property damage.

It is governed by contract law.

Where you need to begin, but few do, is with the basics of real estate, many don't understand what it is they are actually leasing or their obligations.As mentioned, study your state laws as well as HUD housing regulations, it's all on the internet on government sites.Understand what an escrow account is, how funds are accounted for and when they are required.Understand the basic tax implications of renting real property, get with a good accountant.Know too that all real estate is local, you need to understand what is locally accepted and how laws are enforced, check to about building regulations locally concerning rentals as well as fire codes.

Indiana, and most other states, have statutes known as "Landlord/Tenant Laws" that govern when and how such notices should be delivered.

I also don't believe the government would let them go bankrupt (even though I think they should).I was mad at myself for not buying Ford stock when the heads of GM and Chrysler were begging Congress for cash and the head of Ford said he didn't need any.

Selling pencils or balloons is not real estate, real estate is highly regulated, by law, governed by law, it applies to everything you say, write and do when real estate is the subject of attempting to make any profit, fee, income or interest in it or to it.

{This has evolved out of concerns over counterfeit bank notes} However, official government policy is to encourage retailers/lenders to leverage the security features of Canadian bank notes as it is a more effective protection against counterfeit losses.

To the extent the exclusion is not available or is insufficient to offset the entire gain on the sale of the principal residence, any remaining gain will be subject to tax at the 20% federal income tax rate plus the new 3.8% tax rate, as well as any applicable state and local taxes.

They have all sorts of incentive to:1) pay the rent2) not screw your place upIf they miss rent or do damage, they won't have government backing in the future.