Structuring property investments for tax purposes

Each investment property can be held separately in your name, but to obtain personal liability protection and ease of management, it may be a good idea to form an LLC. This is one example where an LLC is preferable to an S. Corp.

Work with a knowledgeable attorney to set one up under your state's law and then transfer title to your existing properties to the LLC. Note that some experts advise using separate LLCs for each property. You should also discuss this option with your accountant.