LLC restriction from employer, does this solution work

[Matthew Hicks]

Hello,

I have a single LLC that I've used to flip a few houses in, but I've also started to rent out some properties (I currently have 1 SFH, and will soon have another and a duplex). They are all in the same LLC.

I'm aware that there are a number of reasons to start using separate LLCs, and at the very least I want a separate LLC for flipping homes and the one that I use to house my rentals.

Here's the problem. Every time "invest" in an outside company I have to register that investment with the compliance group at my company (I work for a large international bank so the regulation requirements are quite large). The process takes time and requires multiple levels of mgmt sign off.

So what I'm thinking is that I create a new LLC and then open up wholly owned LLCs for investment in that LLC. This will allow me to avoiding getting approval for each individual LLC.

With that said, I have a few questions:

1. Are there any issues I should be aware of that come about from creating this intermediate layer between my investments and myself?

2. Is there any way to manage all of these small businesses using a single bank account or do I need to open up seperate accounts for each LLC? Even if I can manage from one account, does this potentially damage the liability protection provided by individual LLCs?

3. Are there any issues with having a SMLLC own multiple other LLCs, one of which chooses to elect as an S-corp (my flipping entity)?

As always, thanks in advance for any feedback