Structuring LLC and Holding LLC

[Lexie Greenheck]

Hi all,

I'm in the process of structuring my LLC's. I have one LLC that is intended to be my "holding LLC" and two other LLC's that will each hold one property and will fall under the holding LLC. My question is around filing. If I intend to have two LLC's under my holding LLC, does the holding LLC have to be the "manager" of each of the LLCs during filing or how do I actually put the LLCs under the holding LLC. Thanks in advance for any guidance you can give me!

[Jason Marino]

Hi Lexie,

What you are describing is a Hub and spoke structure. There is a Hub LLC that owns other LLCs. These spoke LLCs own properties. You could structure the Management and Membership of the spoke LLCs in different ways. The Member of the spoke LLC is normally the Hub LLC. The Manager can be you, or you could list the Hub LLC for this. This will depend on how you structured the Hub LLC. It is sometimes possible to get more anonymity for your spoke LLCs by using an anonymous Hub LLC as the Manager.