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Generally, it is not advisable to hold real estate in a corporation and LLC rules are state-specific.

Since I just read a post on a different board where someone said their lawyer had them put their rental property in an LLC, is there a reference link you can post ? (I'm not doubting you but I have a rental property and I can use some education.)

I was combining two issues in one sentence. If you elect to file as a corporation, then you are a corporation for tax purposes. This may come back to haunt you when you go to sell the property.

Owning the property within an LLC may not provide any significant additional benefit over other forms of ownership or could come with additional costs (annual state fees). See the LLC rules for the state where you will be establishing the LLC. Ownership of real estate as a joint venture doesn't necessarily require filing of an annual tax return - see the definition of partnership in the instructions for Form 1065.

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