Umbrella Company / DBA

5 Replies

Hey All!  

I'm looking for experienced REI's with knowledge on how to properly set up a DBA or "Shell" company for what I'm looking to do. I want to have a solid Email/Biz Card/Title to advertise myself as, or "The Main Company" you could say, along with being able to form separate LLC's for each individual (groups of) property acquired for each separate investor, hope that makes sense.... Example below:

Biz Cards/Email as "XYZ Group"

-Property #1 with investor "X" forms LLC as "DL Properties"

-Property #2 with investor "Y" forms LLC as "BP Properties"

-Property #3 with investor "K" forms LLC as "NY Properties"

Etc Etc Etc.... I'm the Deal provider in all deals, representing MY company name, but forming different relationships with different investors and keeping them separate.... Any tips/pointers much appreciated!


Paul R Schiller

If your state allows it you could consider a series LLC - main one that is your umbrella LLC, with separate LLCS created within that for each individual deal. That said, talk to your CPA and/or legal counsel for advice.

@Paul R Schiller you can setup parent subsidiary relationships with LLCs. For example you could have Shiller homes and under it you could have XZY LLC, JKUY LLC, etc which are all owned by Shiller Homes. You could then use this to brand yourself as Shiller Homes while leaving the other entities in their own LLCs...

You seem pretty concerned about the liability side of this, I would recommend you talk to @Brad Schaeppi who is an expert at this.  Cutting corners on setting this up correctly could make this a big waste of time on your end.

@John Woodrich I appreciate the insight.  "Branding" is what I'm looking to do, correct.  From what I understand using subsidiary relationships can get complicated tax-wise, but it may be what fits my expectation here.  I will be consulting my CPA in regards to this as well, and if @Brad Schaeppi would provide some thoughts here that would be awesome too!

P.S. I'm a MN native and also live in the state.... you have any recommendations on good meet-ups or mastermind groups you attend?  


Paul R Schiller

@Paul R Schiller it isn't complicated tax wise if you are the only owner.  Your CPA should know this and be able to advise you.  A few of my clients are setup this way but it really depends on how the properties are financed and whether it is worth the hassle.

Your goal is liability protection with the LLCs.  If you have enough properties where you want to setup a structure and branding hopefully you have the cash flow to pay an attorney for a couple of hours of time to make sure you have it all set....  This isn't an area where I would rely on internet advice.  Brad is great but he is busy with his clients so the best way to get a hold of him is to contact him and setup a meeting.

I have a lot of clients who go to the meetups and I have been invited to a few "secret" mastermind groups but being a full-time CPA and running a flipping/rental business is enough work. I have to put some investment time into my wife.