using LLC on rental as a liability shield, has some benefit but not a 100% guarantee.
if your rental holds a mortgage in personal name, you still risking tenant can sue beyond the LLC, liability insurance should always be your first line of defense.
any escrow company or RE attorney can do a quikdeed for you, $30-50 each.
when you setup your LLC, you can elect the LLC, for tax purpose, for either 1a, or 1b.
