Setup Holding/Management Company?

[Jordyn Gegg]

I have several properties each in different entities, with different partners. I am managing all of the properties, and am considering setting up a company at the top to take my interest in each entity, and serve as one name I can manage all of the properties under. 

Would it make sense to setup the one LLC to house my interest and management? Or setup one entity for management and a separate one to hold my interest?

[Chris Seveney]

@Jordyn Gegg

If you mean like property manage then you would need to get licensed and insured for each property since this new LLC does not own them

I would not take on the Burden or expense of setting up another LLC for something like this since it doesn't gain you anythibg

[Andrew Freed]

@Jordyn Gegg - I have a PM company that oversees all of my individual LLCs. The LLCs pay the PM company anywhere from 7-8% of the revenue and the PM company oversees the assets and employees my staff. I personally like having a separate PM company for many reasons since it clearly separates staff and other resources into one bucket. It also allows you to grab debt from bank easier since there is more revenue and expenses going through this compiled LLC vs. each individual LLC. That is just my take.

[Jordyn Gegg]

@Andrew Freed, 

You don't have any issues from a tax perspective with bringing passive and active income under the same entity? And you don't need to be licensed if you're just managing your own stuff do you?

[Andrew Freed]

@Jordyn Gegg - No I think you are overcomplicating this. Also, this is why you pay for a good real estate and business focused account.... so you don't have to try to figure out something that is not your expertise or specialty. 

[Aristotle Kumpis]

Hey Jordyn. Check out this video that might help you. I work a lot with Anderson, and they are great.