Management LLC is unnecessary for self-managed properties...

[Davit Gharibyan]

Currently I have a holding llc and a management llc. I own both. I was doing my taxes and my and my accountant suggested not to use a separate llc for my pm company. He explained that it is unnecessary and generates extra taxes since the management fee is not a rental income and is taxed more. He suggested to just use the holding company llc for a particular rental. He told that the only time I would want to use a separate llc is if I am going to manage other's properties. And if I have employees, I should have charge their pay as an expense on a particular property and not on management llc.

He makes sense, however time after time I see companies that do self-managing have a separate llc for management. Can anyone answer why not just do the way my accountant suggested.