All Forum Posts by: Rachel Mazzanti
Rachel Mazzanti has started 2 posts and replied 86 times.
Post: Holdings LLC made after multiple LLCs
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Hello!
Just trying to understand something.
So we have multiple LLCs for operating things such as consulting business, accounting business, and others that were created before a Holdings LLC was created. These are all single-member, is there anything that needs to be done to show that the Holdings LLC is the parent one?
Thanks. Any feedback will be highly appreciated.
Post: Virtual Bookkeeping Recommendations?
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Quote from @Matt Ten:
I'm looking for a virtual bookkeeper who is familiar with best practices with house flipping, multi-family and short term rentals. I currently use quickbooks but am interested in optimizing my process and offload some of the manual work that I've been doing. Any recommendations?
Hello Matt,
Sent you a connection. Do you want to stick with quickbooks?
What is your budget for this person? How many properties do you have? Number of projects?
Post: How does this business structure sound?
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Quote from @Nathan Brown:
Quote from @Corey Duran:
Quote from @Nathan Brown:
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?
What do you mean by licensed? I have a property manager who works for me who is unlicensed. He more or less just finds tenants, calls when they are late, and handles maintenance calls so I don't think its a problem him being unlicensed. I am a licensed real estate agent and I manage everything paperwork wise including keeping the books. If I make a management company I could charge my other businesses a fee that will convert the income from passive to ordinary (or something like that.. my accountant explained the benefit there).
"property manager who works for me who is unlicensed" bro be careful about calling unlicensed assistants property managers. Besides that, thanks for the clarification. The company I'm with here in AZ did exactly what you're thinking of doing. You might consider hiring out the role of DB though. That's a beast of a job that will suck your time away from doing the more higher payoff activities of investing.
I think you can call anyone a Property Manager if the owner hires this person directly as an employee. He didn't state if this person is a 1099 or an employee.
Post: How does this business structure sound?
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Quote from @Corey Duran:
Quote from @Rachel Mazzanti:
Quote from @Corey Duran:
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.
I have to agree that 1 LLC with that many properties is a bad idea.
I know there are some investors who sets up a PM LLC to manage their own properties.
I probably can connect you with someone I know that might be able to help. I mean there's no wrong option, but it also depends what it is you are trying to do.
Do you mean payment master as the LLC to manage? That sounds similar to what the management company would do in my model. I could then charge myself management fees to move the type of income for my taxes. This sounds appealing because I want to keep operating the same (one bank account.. would do 2 if needed). I would wanna keep operating the same and then have separate llcs for protection. I do not know if just having separate llcs is the best way or having one LLC as an umbrella (or hub and spoke model) is the way to do it. I do not know if doing this adds more protection or not.
Yes the PM LLC will not own those LLCs. You can have 1 checking account and 1 escrow account for all the security deposits.
I've always been told that it is best to have LLC per property and make sure you have a good umbrella insurance. Insurance Broker will evaluate your situation and give you the best option.
Post: How to structure one separate entity for marketing different rentals (held in LLCs)?
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I think the next best step is to find a CPA or an Accountant/Consultant specializes in RE accounting.
I spoke to my boss and he said that 1099s won't need it because it is for your own properties.
Post: How does this business structure sound?
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Quote from @Corey Duran:
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.
I have to agree that 1 LLC with that many properties is a bad idea.
I know there are some investors who sets up a PM LLC to manage their own properties.
I probably can connect you with someone I know that might be able to help. I mean there's no wrong option, but it also depends what it is you are trying to do.
Post: How to structure one separate entity for marketing different rentals (held in LLCs)?
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Hello @Dani Zee
How many properties are you managing? It seems you might be over worrying about a lot of things. I can only comment on things that I've seen first hand when I worked for someone helping investors like yourself.
If you are already managing it, you can create a PM LLC. The PM LLC would be the signer of behalf of the owner (tenants won't know it is you). Do you have a website, a PM software and accounting software that you are using? Are you doing all the accounting work yourself or you have someone doing it for you already? Are you doing taxes yourself? About how many bank accounts do you have?
You won't need to do DBAs.
Post: Accounting and Banking
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Don't get business checking account yet.
1. setup LLC
2. get EIN
3. apply for bank account
4. get business credit card
Let me know if you need help getting this all setup.
Post: Looking for a recommendation on a cpa
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Check your inbox. It is an invite to be a connection on BP :)
Post: Looking for a recommendation on a cpa
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Quote from @Edgar Robles:
Quote from @Rachel Mazzanti:
Hi Edgar,
Just curious what are you trying to accomplish? You might not even need a CPA.
im looking for tax advice and also additional guidance in setting up my real estate business
You won't need a CPA for that. I mean it is beneficial, but you won't need one especially if you are just starting out. Are you starting out?
I'll send an invite to connect.