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Updated over 9 years ago,
Multiple LLC - Property Holding and Management Company
I currently have 3 rental properties. I worked with an attorney to set up two LLCs.
The first LLC is a "holding" LLC. This LLC owns the properties. I plan to place 4-5 properties into this LLC and will then create other holding LLCs for each additional set of 4-5 properties I purchase.
The second LLC is a "management" LLC. I use a professional Property Management Company to manage our properties (which I love), so my management LLC exists to simply handle all business and funds. I set this up primarily so that I didn't need to set up separate bank accounts in the future for each holding LLC I create. I want to be able to run all my rental property business through one bank account.
However, my lawyer and CPA are not in agreement as to which LLC should sign the W-9 with the professional Property Management Company that I work with. My CPA thinks the holding LLC should sign the W-9 and my lawyer thinks the management LLC should sign the W-9.
I wanted this to be simple. Now I'm really confused. Help!