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Updated over 3 years ago on . Most recent reply

User Stats

125
Posts
71
Votes
Troy DeLong
  • Real Estate Agent
  • Lansing, MI
71
Votes |
125
Posts

How To Structure Your LLC "Tree"?

Troy DeLong
  • Real Estate Agent
  • Lansing, MI
Posted

I'm looking to buy my first multi-unit shortly and would like to create my first LLC to go with it. Michigan is very cheap to create an LLC so I figured why not.

How should I structure this, especially if I plan to buy more down the road (Residential and Commercial)? 

What I was thinking at first was making it so I have some 'Managing' LLC's that owns all of the individual property llc's, with myself being the top leveling owning all of the managing LLC's.

 Top Level would be me, the individual
A) Managing LLC #1 (Residential)
         1) Example 3-unit LLC
         2) Example Duplex LLC
3) Example SFR LLC
   B) Managing LLC #2 (Commercial)
         1) Example Office space LLC
         2) Example Mixed use Downtown space LLC

Is this the best way to do this? Again, LLC's in Michigan are very cheap to create and very cheap to maintain.

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