LLC owning other LLC's - How many Filings?

Question

A Tax Question : I have a Wyoming LLC that owns 2 Hawaii LLC's. Wyoming "parent" LLC is an S-Corporation. For Federal Taxes ... Do I just file for the Wyoming LLC? No need for pass-through Hawaii LLC's?

I am filing Hawaii State Taxes for Hawaii LLC's.

Thank you in advance,

Mike

I am filing Hawaii State Taxes for Hawaii LLC's.

Thank you in advance,

Mike

Michael Gayer Jr · Answer

@Elijah F.

I formed the "Parent" LLC in Wyoming for Asset Protection.  This Wyoming LLC owns my single-member  Hawaii LLC's.  I act as Manager, I own nothing on paper.  To get paid I can employ myself as an Employee and receive a W-2.  I get separated from business for Liability reasons (LLC).  The advantage to a Wyoming LLC is that I fall under Wyoming Law.  As long as I am compliant, creditors cannot pierce my corporate veil.  I only file 1 Tax Return for 3 businesses.  I used Robert Kiyosaki's corporate attorney, Garret Sutton from Corporate Direct.  I set up the Wyoming through them, and did my Hawaii LLC's myself.

Basit Siddiqi · Answer

@Michael Gayer JrThe Wyoming LLC that elected to be taxed as an S-corp is required to file a tax return.If the Hawaii LLC's are single member LLC's - then they are not required to file a separate tax return and their information gets reported on the S-corp return.Were these entities formed in 2017? S-corp tax returns were due 3/15

Just as a preface - it is normally not suggested for corps to have buy and hold real estate in them.
It is normally suggested to create an S-corp for an activity that has ordinary income to limit the self-employment exposure.

Steve Hall · Answer

If anyway reading this post is considering using Corporate Direct, read this post first...

Eddie Aviles · Answer

@Michael Gayer Jr Thanks for the reply. Sounds like you are satisfied with the work they are doing for you.

Michael Gayer Jr · Answer

@Eddie Aviles Aloha! I just started using the "CHAT" box on the website.  It's been over a year since I've needed them.  Once formed, I felt I knew enough to stay compliant.  Others may want to continue to use their services every year.

Michael Gayer Jr · Answer

@Basit Siddiqi

The entities were formed in 2017.  The S-corp is for Wholesaling and future Fix-n-Flips.  No Buy & Holds.  I intend to become an employee of the S-corp in the future when income becomes more steady.  I'll take a W-2 and leave rest in S-corp.

I did 4 quarters of Form 941.  Are there any other filings I need to do?

Thank you!

Elijah F. · Answer

This is interesting. Gonna follow to see what others think. One question, what was the reasoning or benefit to havinvg the Wyoming llcs?

LLC owning other LLC's - How many Filings?

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