What type of business structure is recommended to someone who’s is not a real estate professioanal but wants their RE business to be more structured, protected and tax advantageous.
I currently own a few properties and thinking about setting up an LP or LLC to manage them for me.
Would this structure be recommended in order to meet my goals?
Is this a legitimate type of business?
Would I be able to deduct my business related expenses?
Would this be considered a hobby/activity entored for profit/or a business?
That depends on your goals. LLCs provide a separation between interests. LPs make it easier to transfer wealth. A c-corp makes it easier to accumulate wealth. Each is a tool with its own advantages.
It is legitimate as long as it engages in legitimate business.
Business expenses are always deductible. Incorporation/organization is not required.
If you have a profit motive and act like a business, it will be treated as a business.