[Don Plumley]

An LLC has the protection advantages of a corporation, and the tax advantages of a partnership (pass through loss or income through a K-1). You can elect the corporate tax option, but that is typically not an advantage. Some LLC's will elect the partnership taxation during the time when the company loses money, then convert to corporate tax status when very profitable to distribute income through capital distributions (to be taxed at the lower capital gains rate).

To your question, I assume the benefit of the LLC for a rental property is to help shield your personal assets from any issues that arise from your rental property. e.g. people/renters get hurt, find mold, etc. and sue the property owner/landlord.