Purchasing A Multi Family Apt Building With A Partner

[Leslie Ray]

Let me preface this by saying, we have an appointment with an attorney to ask these questions as well but wanted to reach out to the group for your thoughts/ suggestions...... My partner and I have been thinking about how to structure our partnership to purchase Multi Family Buildings and have been told that we need to each have a California LLC (holding company) and Wyoming LLC operating under the California LLC. Would we need to create another Wyoming LLC to take ownership of the property we purchase and we use our individual Wyoming LLC's to be the partners in that deal? Also, if we are creating a website for credibility purposes together, what entity should we have own that site? Thank you so much to ANYONE who answers this......

[Katie L.]

@Leslie Ray

What is the purpose for opening the multiple WY LLCs? Are you aware that any LLC that does business in California is subject to an $800 minimum tax? Where will the property(ies) be located? Will you be using financing to purchase the properties?

Definitely a good idea to talk with an attorney about all of this who is familiar with your situation and real estate and taxes.

*This post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.