Full disclosure they are an affiliate of mine and I am a minority shareholder.

So you can pay yourself well if shareholders look the other way when the fundamentals are in the toilet.

@Daniel McNultyAn entity can also be an accredited investor if all its members/shareholder are themselves accredited.

Tax advantages - For single member LLC, there should not be much if any difference as they will be treated as a pass through entity.There will be a more paperwork to file and more fees (annual "shareholder tax", registered agent fee, etc)If it is a multi-member LLC, then you will also need to create K1s.Also keep in mind that most banks that issue Fannie/Freddie backed loans will not lend to LLCs (expect for delayed financing)One area I do find some value in my LLCs is to give a more professional "business appearance" (for listings, collecting rent, etc) but I suppose you can also achieve that via a d/b/a a.k.a "fictitious" business name filing

THEN start litigation against the other share holders of the property. 

What you're making reference to is shareholder claims in an S corp- this tends to only be applicable with publicly traded entities.

The limited partners are equity shareholders of an LLC that owns real estate (the syndicated apartment building or other commercial asset). 

The income from the out of state LLC will not be subject to double self employment taxation because the LLCs are disregarded entities for tax purposes and the income flows to the CA LLC and then to the member(s). 2) When you add an S Corp to the mix it can get a little messy because generally only individual persons can be shareholders of an S Corp, meaning that other entities cannot be shareholders of an S Corp.

Hello,I myself invest into a fund and have my own investors (that are not shareholders in my company) and want to know the options for protecting every individuals interest in case the lead (or only manager) faces untimely death.Is it best to use a will, promissory note, or other recording instrument?

How many shareholders?