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Updated about 6 years ago,
Holding Companies / Embedded LLC Questions
Was hoping to get some insight on holding companies or LLCs that have Subsidiaries which hold the investments. I've been researching the last few weeks on this because I'm planning on purchasing my first investment property this year; I don't believe I 'need' a parent LLC for liability protection (especially because it'll be my only asset).
My question is this: should I create a holding company now (in which, I'm the principal) and then create an LLC for my investment(s) (where the holding company is the principal) in anticipation of purchasing several other assets over the course of the coming years, or should I take it step-by-step, put the property in an LLC and wait to embed anything until I have more assets?
I don't quite understand all the logistics; I know everything is relatively dependent on which state you live in (Arizona, btw). Not asking for legal advice, just need enough info to ask a better question.