Operating and holding LLC structure

4 Replies


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.

@Kulin Dakwala

Just curious

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??

@Kulin Dakwala

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)

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