Most tax benefits for business structure with multiple LLCs

[Micaila Frazier]

I am looking for some advice on structuring my businesses so that I can use income from two to invest in the third. The two businesses that would feed the third (real estate investing business) are a property improvements llc and a property lighting business that is an llc. All three are co-owned by my spouse and myself with no other employers. We run everything between the two of us and are looking at how to support the real estate llc with the other two using the best tax strategies. 

[Josh Lewer]

@Micaila FrazierSince all three of your businesses are LLCs owned by you and your spouse, the IRS treats them as pass-through entities by default. That means all of the income (or loss) from each LLC flows directly to your joint Form 1040, regardless of how you move funds between entities.

There generally (I say generally as there could be some advantage to S-Corp, but thats more of an election than structure) isn’t an entity structure that allows you to “shift” income in a way that changes your total tax liability. Again best talk through with your attorney along side tax professional. Thanks for posting.