Using two LLC's (Property Holding and Management Company)

[Scott Bartlett]

After talking to an attorney about LLC's and etc, it was mentioned that some clients of theirs will use two LLC's for their rental properties.

One LLC would be the "holding company" with all of the properties in the LLC's name, and the Holding Company would then LEASE the properties to the "property management company", which would then lease the property out to tenants.

So that if there was ever an issue, the "property management company" would be responsible and face liability, and not the holding company, but since the property management company doesn't have any actual "assets", there is nothing to pursue in a lawsuit?