Recently, I worked with attorney and created one operating LLC and one holding LLC. I am in process of setting up bank accounts for each and transferring title from my name to LLC. I really appreciate if can get help on below.
1. Do I need to transfer title from my name to operating LLC or holding LLC?
2. Assuming that operating LLC will take care of lease and collecting rent. Do I need to use operating LLC to pay mortgage or transfer money from operating to holding and holding LLC will pay mortgage?
3. How can I put initial deposit in both the accounts?
Thanks in advance.
@Kulin Dakwala typically you want to have an LLC that will hold title to the property. Your Holding LLC will be the managing member of the property LLC. All rents and payments with flow through the property LLC. The Holding LLC will receive management fees from the property LLC.
Got it. Thank you Greg. Appreciate your quick response.
How do you sign documents for the llc that has the properties??
On the operating between the holding and the property llc are you listed as the manager or is it just holding llc member managed who owns 100%.
How did you open bank account for the property llc when you are not the owner nor manager??
Out of curiosity, why didn’t you work this out with your attorney who set up your structure? Honestly, I would think the “correct” answer is dependent on the details of your setup/operating agreement (assume you needs an operating agreement)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you