LLC

If you decide to move the property to an LLC, there are a few steps:

  *  [Create an with the WA Secretary of state $200 initial filing, $60/yr annual reporting.
  * Get an from the IRS. (needed for bank account) [IRS
  *  Open a bank account, ideally one local to the property with a physical branch(so that the tenant can just wander in and deposit the rent FOR you) Alternatively @ the same bank as the tenant(so the chances of them being able to do an electronic transfer to your bank account is higher, but not guaranteed.  Otherwise you are stuck with CC fees or Zelle or something else w/ fees.. or having to handle checks! gross..
  *  File an [annual ($60/fee)
  * the property in the LLC's name, with a [quit-claim so the LLC legally owns the property now.  $203.50 [filing

  * [Real estate excise REET  This might be $9,600 in taxes(750k*1.28%=9,600) but I'm 99% sure it doesn't apply because of the gift exception [WAC

Pros:

  * Almost complete liability from everything.
  * Might be good when selling the property, i.e. you can sell the entire LLC, and not the property itself.  This gets you out of Real Estate Taxes(1.28%, and various other paperwork, like that $203.50 filing fee). You would still own income taxes on it, but you know, taxes always happen.  You could always take it OUT of the LLC or have the LLC sell it, if you are going to do a 1031 exchange or something like that.
  * Totally separate legal entity, so a lot easier to track everything, since everything has to be done inside the LLC.
  * Privacy, the LLC can be registered with any name whatsoever, I recommend 2 or 3 random words.  Your debit/credit card for property expenses and bank account would then have that name, etc.

Cons:

  * Costs $$'s ($200 + $203.50) = $403.50 setup + $60/yr.
  * A touch more paperwork.
  *  Complicates Tax filing, but because of your professional LLC, you almost certainly have to file a full 1040 anyway, so not by much, if any.