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Updated over 6 years ago on . Most recent reply
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Mulit-Member LLC (opco), Mging Members solo LLC for solo401(k)
Somewhat similar to this older topic (https://www.biggerpockets.com/forums/51/topics/144...), but differing: have a multi-member LLC through which most active business (investing, holding) occurs. Managing Members have differing retirement visions. One non member employee in USA.
Both Managing Members have pre-existing solo LLCs - which do not have membership interest in the Multi-Member LLC, and are considering idea of changing set-up to pay these solo LLCs our payments through some services contract and then set-up solo 401(k) at that level. We do not share a common vision otherwise, and would prefer not to do anything at the MM-LLC level nor give the employee a 401(k). Income at the MM-LLC can be safely said to be Active and not Passive.
What might be the tax law issues here? We can safely say that we don't care about Self-employment tax minimization, only the retirement accounts and keeping independence of strategy / vision.