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Updated over 6 years ago, 04/18/2018

User Stats

98
Posts
63
Votes
Michael Klinger
  • Rental Property Investor
  • Rancho Mirage, CA
63
Votes |
98
Posts

Fed ID Question LLC related

Michael Klinger
  • Rental Property Investor
  • Rancho Mirage, CA
Posted

I wasn't sure which forum I might get an answer on, but since this relates to Commercial/Apartments. As its tax season, so hard to get the attention of an accountant on this one right this second. So here goes:

For "good reasons" and as part of a 1031 exchange, my California LLC acquired three different Ohio apartment properties in January. And for "good reasons" that would likely to put the forum asleep, one new Ohio LLC was formed to contain each of the new properties for a total of three new LLCs that are 100 percent owned subsidiaries of the parent California LLC, which files federally as a 2 person partnership with an established Fed ID #.

All things otherwise being equal, the LLC's were only created to acquire the properties a certain way not particularly to run a business through. For simplicity and so far in this early stage, all three of the properties', bills, cash flow, etc. for all of this is flowing through the parent LLC.

So... Do my Ohio LLC's under the main LLC "have to" have a Fed ID # if they are only there to contain ownership of the property?

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