Wanting to set up an LLC in Georgia for a single residential rental property, for potential liability protection. I understand that this income is considered passive, so just passes through without withholding, social security taxes, etc. It also seems that normally a single member LLC would not have to do any extraordinary paperwork, tax filings, etc. to distribute or report income, but a muti-member LLC would.
The CPA with our financial adviser says that a married couple can operate a two-member LLC in these regards the same as a single-member LLC if the LLC is a "qualified entity" and we elect to treat it as a "disregarded entity" for federal tax purposes. We seem to meet the three "qualified entity" requirements, as the house was bought after we married and titled as JTWROS, we are the sole owners, and file jointly.
My question is whether there is any impediment in Georgia not being technically a "community property" state, although this particular real estate would seem to be such. Some explanations of the rules reference the spouses being in a "community property jurisdiction". Does this mean it has to be in a community property state, or just that the particular holding has to be community property?
Here's the specific article that caused me to raise this question: http://www.limitedliabilitycompanycenter.com/husband-wife-llc.html