LLC or Sole Proprietor ?
We (husband and wife) are in the process of buying a single family home as an investment property with the intend to rent it out. We will have a mortgage and probably a negative cash flow.My husband is going to do the property management and all maintenance work plus finish the basement. 1.)Should we create an LLC which gives us more protection against loss of our other assets or should we operate it as a sole proprietor? 2.) Can husband and wife, which will be owners of the LLC file their taxes as a sole proprietor as long as they file a joint tax return? Or will it be considered a partnership?3.) Are there any tax advantages in an LLC, like deducting the time from my husband he will be working at the investment property, which I believe will not be possible as with a sole Proprietor, but I am not sure?Any help will be greatly appreciated. Thank you!
