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Updated about 2 years ago on . Most recent reply

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39
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14
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Corey Duran
  • Rental Property Investor
  • Toledo, OH
14
Votes |
39
Posts

How does this business structure sound?

Corey Duran
  • Rental Property Investor
  • Toledo, OH
Posted

I talked to an attorney who looked over my current situation (1 LLC) and recommended instead of having one LLC holding 15+ properties to divide them among smaller LLCs that contain fewer properties to separate them in case of a lawsuit. He then recommended having one LLC that owns those so I do not have to operate out of a different bank account every time. I then talked to an accountant who recommended I do the same thing but instead have the primary LLC that owns the others be a management company as well to change the income to favor more write-offs. Has anyone heard of anything similar to this? Do you do something similar? Any questions or concerns I should bring up? Complications with this?
I can provide more info but I was curious if any of you might have some insight on these suggestions.

Most Popular Reply

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101
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76
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Nathan Brown
  • Property Manager
  • Phoenix, AZ
76
Votes |
101
Posts
Nathan Brown
  • Property Manager
  • Phoenix, AZ
Replied

many of my clients do one llc per property (or in some cases per portfolio), but you lost me at the whole management company for tax write offs thing. I mean are you already licensed and self-managing?

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