some clarification on tax issues

I am a senior tax accountant specialized in small businesses. I happened to see some tax questions in this article and just wanted to make some points clear for your guys. Hope they can be of any help in your rental business

1. LLC is regulated by states, not Fed. Its major purpose is for liability protection. If the houses are owned by LLC, law suit can not pursue beyond those assets.
2. Sales tax exemption: if you don't pay sales tax to the wholesale vendor, you are required to register with the state and remit to the state the sales tax you collect from your customer except under special circumstance e.g. new construction, customer as exempt org.
3. Residential rental always uses Sch E. Equipment rental uses Sch C. Sch C will pay SE tax.
4. Single member LLC uses Sch E. Husband and wife owned LLC can be considered as single member LLC, or can chose to file 1065, it may end up same as filing as single member LLC depending on the active or inactive role designation. Profit or loss from 1065 K-1 is shown on Sch E page 2.
5. Loss from Sch E may not be deductible due to passive loss limitation.
6. 1065 partners don't get paid W2 wages if there is payroll for the business
7. Mileage, home office and business meals are deductible no matter there is LLC or not. Lawn care related expenses can not be included in home office except limited special cases. Phone and internet deduction is based on actual usage, not square footage %.