So we are at a level where we have 10 properties and each one is under individual LLC. All individual LLC are owned by a holding parent LLC . Let’s call parent LLC A and child A1-A10
Talking to the CPA he floated the idea that now we need to start parent B and buy other properties as child B1,B2 etc
I realized that this now causes tax filing for personal, and A1 LLC. Getting B1 leads to another company tax filing causing whole set of CPA $1000 fees a it’s now different company. His one argument was it makes it less prone to audit which I do not buy as all LLC properties are shown on schedule form on tax returns
Instead of simplifying looks like CPA is making it complicated and creating more money for himself.
What is best way to buy properties when you have protocol of 2 digits ?
My understanding is child LLC and then parent LLC and liability insurance gives enough protection.
Also question- every LLC cost money and cost money to manage and book keeping etc .
Would it make sense to buy multiple properties under one LLc or buy under LLC and then trust?
Real estate structuring
byu/Leather-Wheel1115 inrealestateinvesting
Posted by Leather-Wheel1115
3 Comments
Sounds like your CPA is trying to milk the cash cow here. With 10 properties you’re already pretty well protected with the current structure – adding another parent LLC just for “audit protection” is BS when everything still shows up on your personal return anyway
Most people I know with 20+ properties just keep expanding under the same parent structure, maybe throw in some umbrella insurance if you’re paranoid about liability
There is no ONE right way to do it.
If you dont like what the CPA is telling you, get a 2nd and 3rd opinion.
Can you elaborate on what benfit you think structuring your holdings like this is affording you?
Because if you think you have any asset protection whatsoever doing this you are going to be very shocked the first day you step into court and the judge takes one look at this, laughs and grants the plaintiffs motion to ignore your llcs.