All Forum Posts by: Nicholas Piva

Holding Company = no operations of their own. 

Parent Company = has operations of their own. 

Both can own subsidiaries. One has income/offers a service, the other does not. 

C-CORP is a bad idea. By electing for a C-CORP status, you will be taxed twice. My parent company is an LLC, and is taxed as an S-CORP. S-CORP eliminates double tax.

My setup is the following: S-CORP (holding/parent company) and it has 2 wholly-owned subsidiaries. This allows me to have 1 tax return (simple) with the Holding Company overall tax a congregation of the subsidiaries P/L.

Hi,

I own 5 pieces of real estate that are worth around $3M. They are all in my name. I know that is not ideal. 

My current business structure: 1 holding company, 2 wholly-owned subsidiaries. I use the money from my holding company, after taxes, to invest in real estate. 

My question is: should I have another LLC(s) that are 100% owned (wholly-owned subsidiary's) by my holding company so my overall tax return encompasses all of my P/L and while protecting myself from liability.

TL/DR: Can I have my Holding Company which runs my 2 subsidiaries (operating companies) also own LLC(s) that own/manage my Real Estate operations?

Thank you in advance.