Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 11 months ago on . Most recent reply presented by

User Stats

15
Posts
6
Votes
Ben Foullon
6
Votes |
15
Posts

Holding Company Question

Ben Foullon
Posted

Hi everyone! 

I have an LLC and a friend of mine has an LLC. We formed a holding company where both of our LLCs are members. Are we able to transfer our funds to each other's LLC without worrying about taxes since they are both under the same parent company?

Thank you so much!

Most Popular Reply

User Stats

5
Posts
4
Votes
Andy Krafft
  • Accountant
  • Charlotte, NC
4
Votes |
5
Posts
Andy Krafft
  • Accountant
  • Charlotte, NC
Replied

Ok and what is the holding company holding? 

Since each of your LLCs owns 50% of the holding company, but the holding company doesn’t own your individual LLCs, the IRS will likely treat your LLCs as separate, single-member LLCs for tax purposes. This means that any transfers of funds between your LLCs could have tax implications.

What is the context for transferring money back and forth? Is it for services that one LLC provides the other? Or simply to help the other LLC pay for expenses?

Loading replies...