Parent Company or Not Yet ?
I need to start an LLC for my 1 Rental to Own Property. I plan to buy more when I understand Real Estate. The new ones will be closer to my home, so they will be buy and hold properties. This rental was my personal home. I have contracts, but really need different ones. (can I find some on Bigger Pockets, for South Carolina. Rent to Own ) .
Main question is starting the LLC , I'll be doing for the Rental, and I will have more. Should I setup a Parent Company LLC now..or when I het a 2nd property ?
Do you pay taxes on all LLC's created ?
How does the money change hands ? If there is 1 LLC I understand money comes in then profit is paid out to me. What happens when a Patent Company is created.???
How , legally, does the money flow ?? does it go
Tennant> Rental Account > Profit> Parent Co. > Owner
\
Mortgage Payment
Or Does Profit not have to pass through Parent Co. and paid to owner ?
I would think if it passes through Parent then I'm paying taxes on the same money twice !!!??? Right ??? Or is that where a 1099 comes in ??.