All Forum Posts by: Kristen Bouvier Scoville

@Dave Foster Ok great.. Thanks so much.. My thoughts.. I just wanted verification.. And that is what we did was negotiate an increase in price if sold with the LLC. I just wanted to be sure I was receiving the correct information.

Thanks again!!!

Tax Question... I have a Commercial Property within an LLC. Tenant wants to purchase. What is the advantage and/or disadvantages of selling with or without the LLC attached for me? Or is there any? Im in New York state? Obviously I will have to pay capital gains but unsure if I sell with the LLC if it will helpmeet or not if if it really doesn't matter. Does anyone have any input on this?

@Llewelyn A. not sure if I can answer the FICA non-FICA question but I do not believe you have to show a profit in an LLC. I also believe you don't have to have property in an LLC. You can have an LLC as a Management Company. What I would do is pay the Operating LLC a Management Fee from each LLC to do the Property Management for the other LLC's, create a salary or a draw from that LLC so you create an actual profitable entity. It may not be a large profit but it creates an established business. That was a thought I had. But some may do it differently. Thoughts? @Scott Smith

@Scott Smith thanks so much! I had a feeling New York didn't offer S-LLC's I may send you a personal message for more information to see whether you work with clients out of state. On another note.

Regarding the bank accounts. My 1st question. I don't want an account for all children of the Series LLC anyway. So I can have 1 bank account for the Operating LLC and 1 Bank account for the Series LLC as long as I show clear accounting that the money isn't being co-mingled? Thats my biggest question.

But If I do not choose a Series LLC because it isn't in my state is there another option without having so many LLC's or can I have many LLC's without so many bank accounts? I don't mind the large amount of LLC's its the Bank account the are making me CRAZY, could I still have 1 or 2 Bank accounts and do the same thing with an operating LLC?! Just not with the extra liability coverage the S-LLC has? Or does that not make sense?

@Scott Smith also do you know if S-LLC's are allowed in New York State?

@Scott Smith Thank You Thank You so much for some incredible information! This will be so helpful! I have already read the article and some of your blogs. I do have a couple more questions to clarify if that is ok? My view of your description is that the S-LLC is almost like an umbrella and all the LLC's(Properties) are underneath. The "Operating LLC" is completely separate correct?

My initial thought was that the operating LLC would be the umbrella. Although doesn't seem so here. This operating LLC would do all the administration and would hold the "only bank account or would there be 2? If there are 2 would it flow the money back to the S-LLC or all the other individual LLC's? I do use an accounting program that is simple and precise with keeping operating costs separate by categorizing everything. That is why I don't see the need for so many bank accounts. I know I can do it with one. Just wasn't sure the legality of it.

Thanks so much! 

Hi Monica We actually own 20 properties a few that are complexes that have buildings and we use QB online. We have LLC's and use Classes. Not sure if you have the QB with the Tenant function. But it is helpful. We use the Class that is the property and the bank account is the LLC. You can create reports that will help differentiate each LLC. It works fine. As long as you set it up to work for you it really doesn't matter. But QB does work for that.

Could use some Tax Attorney or CPA advice! Here's what I have.. My husband and I live in a small Western New York College Town. We currently own over 20 properties primarily Student Rentals; 1- (6 unit 1bd), 1-(3 bldg- 20 unit 4bd-2bth) 4 commercial bldg's w/ 4 upstairs apart.s,  3 Duplexes, a Double Cottage on a Lake, 1 Auto Mechanic Garage, and the remaining properties are 4 bd 2 bth single family homes.  

I believe our business is getting too big for us and our little town. No offense to the amazing professionals we have worked with over the years but I have been researching a lot and feel as though we are getting mixed information from attorney's, CPA's & Insurance Agents. We seem to be over paying for various types of liability and umbrella insurances which I believe some seemed to be covered under the LLC's protection and I definitely think we have too many LLC's and should be creating possibly an S-Corp or another type of Corporation that will better fit this large of a property portfolio.

Currently we have over 15 Bank accounts and 10 LLC's and our attorney is telling us we need to create more. It is becoming a management and accounting nightmare!

I feel as though we would have much more productivity without having to micromanage so many LLC's and Bank accounts. We both want equal share in the company and there are no other owners. We use Subcontractors mostly have only a few year round employees. So the structure is pretty simple. He does all the negotiating, contracting, building, repairs, maintenance etc.. I do all the buying selling, tenant, billing.. etc.. we hire out for various jobs..

Thanks so much!! Any advice would be so appreciated!