A LLC is not necessary until you grow to the point of having employees.

(b) employees (W2 earners)(c) rental property income (Schedule E)(d) all of the above 2) What, if anything, needs to be done to take advantage of this benefit? 

@Mike HayA hardship distribution is one that is made for an immediate and heavy financial need of the employee, his spouse, or dependents. 

Is it any different just because my employees put on the roof?

Today it's $2.2MM and rising 20% per year (would be rising more if I was keeping it all for myself instead of spreading it around trying to help my kids, fiancee and key employees build wealth for themselves.)

If it is for services and you are in fact an employee they should be paying you via W-2 but it seems like they are doing something funky.

I started in real estate in earnest about 10 years ago while I was still a W2 employee, but thinking of finally hanging up my hat with a primary focus on real estate investing.Cheers,Lawrence

There is a black hole around 100 - 200 units where profit falls off dramatically as you hire employees, rent/buy office space, etc.I know some manager that are killing it with 100 units.

Working on behalf of yourself you can pretty much run your business anyway you want including the roles of your employees. 

Also make sure your insurance is cool with you having employees and make sure the equipment is good.