Does it make sense to start an LLC with a partner as an LLC?

[David Robinson]

I am thinking of partnering with a friend,starting an LLC and buying and managing investment properties. Would it make sense to start my own LLC first, and that LLC would be considered the partner in the bigger LLC. I am wondering for tax purposes, and protection as well.

[Basit Siddiqi]

@David Robinson

Does your friend provide a skill / trait that you currently don't posses?
I would reconsider partnering with a friend just because they are a friend and you have similar ideas. I would instead consider partnering with a person who compliments your skillset or has a skillset you don't currently have.

Regarding acquiring an asset with another person - Your options are through an entity(LLC, LP, Partnership, Corp, etc) or as tenants in common.
Most likely a conversation with a CPA/Attorney would be required to make a best determination.

It normally is dependent on several factors such as where are the partners located(All US citizens?), the income type you will generate(ordinary, rental, etc) and quantity of income that you will earn($50,000 or less or more than $50,000), etc

Good luck!