Updated over 4 years ago on .
Most recent reply
presented by
Help! How to set up the tax structure
Hi, We currently manage a few vacation rentals on Airbnb in both CA and NV, (3 in CA and 2 in NV), and we're acquiring a hotel in CA right now. We live in NV.
I did some research about setting up LLC/c-corps but still get some questions. I'm thinking about putting properties in LLC and renting them to c-corps to operate to avoid some taxes. The reason I do this is that my tax bracket is high about 40%, and the c-corp tax is 21%.
Here're the questions:
1. Should we set up 2 LLCs in both states? We have mortgages in all properties so I don't think lenders would let us put houses in LLC. The hotel can be put into LLC as far as I know.
2.Should we set up 2 c-corps in both states?
3.Should we set up business accounts for every single LLC and C-corps? If c-corps is going to operate the business, the bill should be received and sent out through c-corps' business accounts?
Any suggestions/answers would be much appreciated!