Property Management and Investment LLC

[Walter Powell]

Hi All,

I currently own and manage 10 units with my parents. I have been the property manager for all units and recently invested in a property management software called Buildium that seems to be super helpful so far. I want to take advantage of a feature for tenants to pay their rent online, but I will need a business account to do so. With that said, I'm considering setting up either an LLC or Sole Proprietorship to manage the properties.

The business will not take any income, but will solely be a face for management, while paying out to the owners, and managing/paying vendors. Has anyone had any situation similar to mine and can provide some advice. My accountant seems to think I should setup and LLC, but my concern is the cost associated with setting up and maintaining the LLC, especially given that its not taking in money. On the flip side, I can probably have more write-offs if the owners pay the management company a fee, and the management company records all its expenses. I'm just brainstorming here but would love any advice. Thanks in advance.