Pros for LLC/Corp. besides legal protection

iKwak said: "I been researching on how to form a LLC in the state of California. Let me give you a scenario and see if you can toss your 2cents. An investor wants to purchase a rental property and buy it under the new LLC name that he recently formed. The investor collects monthly rent and pays the property tax. Since it is a LLC, the investor would need to file a separate tax for the residual income?"

HappyHarry said: "The investor should count all the revenues as revenue, remove all expenses, then pay himself and be taxed at the lowered revenue figure."