Tax/Structure Questions on LLC Holding : Property LLC Structure

[Richard Olshove]

Hello BP I had a couple of questions for you about the attached RE ownership structure.   Specifically:

1. For the WY LLC that has a S Corp taxation election does it operating only as a holding company for the other LLCs that own the property with the rent money collected by the holding LLCs that pass the funds to the WY LLC?

2. How do the nested LLCs work from a tax perspective? IE given that Texas is the only community property state I understand I would have to file a 1065 for each of OH and MO, but since the real managing manager is the WY LLC wouldn't I need to file 1065 for each property LLC? And all expenses/profits would pass thru to the WY LLC.

3. For the holding WY LLC what tax return would I file for this one?

4. I am confused as to the value of having a separate LLC (an operating LLC) besides the LLCs holding the properties collect the rent and operate the properties? This doesn't really seem to change the picture much besides adding more complexity without very clear benefit?

Thanks

Richard