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Updated over 12 years ago,
Need advice on proper way to disburse from LLC
I am new to this forum and wanted some advice on my situation. I currently own 3 rental properties with two partners. Two properties are in their own LLCs and the 3rd property is an S-corporation. My current accountant had us set up another S-corporation which will be the managing company. Now my accountant is telling me to take 50% of the rental income from the properties and write a check to the managing company. The other 50% of the rental income take as a distribution from LLCs. This whole method sounds complex and I just need to pay my personal bills since I am not currently employed. Is there any advantage to doing this? Would it be wrong to just take all the rental income from the properties and just write each partner a personal check?