Hi, I have a duplex rental for 4 years but I have never set up an LLC, so I claim that as passive income on the schedule E. I want to acquire more properties and be more involve in real estate investments, I know about the parent/child LLC structure, but can I have a sole proprietorship as a parent and have separate LLCs for each rental?
Hi, I have a duplex rental for 4 years but I have never set up an LLC, so I claim that as passive income on the schedule E. I want to acquire more properties and be more involve in real estate investments, I know about the parent/child LLC structure, but can I have a sole proprietorship as a parent and have separate LLCs for each rental?
thanks!
Jessie
This is a question that should be answered by not just an attorney, but YOUR attorney that knows your situation. It will be well worth your time and money to have a consolation with a local attorney. The cost will be $150 to $400 bucks (or maybe even a free consultation) but will set you up in the right direction for all future growth.
Until then do this to keep yourself safe
1. Do the right thing. (IE; when you hear of an unsafe situation, address it)
2. Have proper insurance
4. Get an umbrella policy (if you have considerable net worth)