Advantages of starting a mgmt company to manage my own properties
I have been doing my taxes this year and I came to this realization, currently I only own investments that I self manage, not a property management business. Right now I own a LLC for holding assets and a separate LLC that I want to turn into a property management company that manages properties I own.
I think there might be some tax advantages to separating the management side as a separate business. So my thinking is my LLC that holds my assets could pay my property management LLC to manage those properties allowing me to deduct management fees from my rental income and allowing me a whole buffet of business deductions for the property management business.
Not even sure if this a brilliant idea or flat out illegal.