Can a holding company (LLC/Partnership) carry both active and passive investments?

[Raj Chacko]

For taxation purpose, how would this work? My 'Holding company X' in WY has two LLCs registered in IL, One of them is in active rental - STR, and another holds assets in a LTR business. I know that the 'Holding Company X' files tax returns, but all of it will flow through to my wife and I. But how would it separate active vs. passive? Is it possible to do that on form 1065?

Should I have two WY holding companies instead, one for passive and one for active?

[Raj Chacko]

Thanks @Steve Vaughan! I am coming to the same conclusion, keep active and passive incomes separate. Thanks again for replying.