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My accountant friend (who will be doing my CPA work, she just hasn't yet) advised me to create an LLC for the business of my one rental property. She says that the single member LLC would not be treated as a separate entity for tax purposes, so that I would reap the same personal tax benefits as otherwise. Of course, the only reason for doing this is to avoid personal liability for anything.

Does this seem like the best plan for dealing with the expenses and income from the property? I was just simply going to open a separate checking account and move money around as needed. Although it's not much of a hassle to set up the LLC, I would need to donate the property to the business, it just seems like a bit of a hassle to deal with.

What do you folks think?

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