I am looking to start my business venture in NY in the next few months. I've been researching endlessly, but there is one question I can not seem to find an answer to. How do I properly structure my company if I am the only owner? There seems to be a lot of discussion regarding partnership parent companies, but not many about single owner.
My ultimate goal is to have the parent company, with subsidiaries for flipping, rentals, and possibly a management company to handle each of the rentals, for further protection. All of these entities would be single member LLCs, with the flipping company being taxed as an s-corp. A single member LLC can own an s-corp, as it is also a pass through entity, but here is where the questions come in...
S-corps require a salary be paid out to you, but how can I be the owner of the parent company, while receiving a salary from the flipping s-corp? The other two entities being single member LLCs are disregarded entities, but how would the s-corp sub affect the taxation of the parent company?
I know it is overkill, but I just want to ensure my personal assets are protected and reduce my risk of "piercing the veil" being used against me being a single owner. Does this structure make sense, or should I get rid of the parent company letting each company stand alone? I want to build a business/brand, and would prefer the parent company approach, but am open to suggestion.
Thanks in advance.
Chris G.
