Moving money between Holding LLC and Property LLC and vice-versa.

[Mike Jones]

Trying to understand how money will flow between Holding LLC and Property LLC.

Assume we have a Holding LLC named ABC, LLC with X as single member owner, and another Property LLC named XYZ, LLC owned by ABC, LLC. XYZ, LLC has 3 properties, receive rental payments, and pay bills. The rest of cash is sent to ABC. Contribution from X owner will be deposited to ABC. If X owner need money, he will take a distribution from ABC. X owner will never go directly to XYZ for deposit nor redraws. Both LLCs have a separate bank account.

Now let say XYZ want to buy another property, and need money from holding llc ABC, LLC. Should that transfer be a LOAN from ABC to XYZ?? What about the monthly cash surplus XYZ transfers to Holding ABC,LLC after paying all the bills, how should that be recorded?

Just trying to rap my head around that. Thanks in advance for your input.