At what point should we use our business for receiving income versus personal?
My wife and I currently both work jobs for which we receive a W-2. We also have some income via 1099 for our rental properties, although it's quite small compared to the W-2 income. My wife is asking me if we should be using our LLC somehow for some of this income, and I can't think how or why we'd want to do that.
I can see us using perhaps the 1099 and having the income that is currently sent to us personally sent to the LLC and then we collect either paycheck or dividends from the LLC, but would that offer any advantages since we'd still be paying the same tax just with an intermediary? Having trouble wrapping my head around the best way to do this.
Maybe I'm just thinking of people who use their business to buy property or vehicles and then lease them back to them personally and this is somehow a tax advantage, but we are nowhere near that kind of income level.