I have 5 properties in two states and have moderate cash flow at this time. (Although It's is growing in the right direction:-)
I am exploring issues about forming a shell company and putting the properties in an series LLC. I have had two consults about this with legal firms but it's quite expensive to do (several thousand) What I cannot seem to get a firm answer on is taxation! I consulted with two CPA's but I don't believe they are getting the real grasp of how to run taxes on this. One thing I don't want to do is tie up all cash flow on lawyers and CPA's just to do this formation and maintain the books on it. I understand legally why this is good for asset/liability protection, but have no understanding of how to minimize taxation.
Has anyone set up their assets this way and if so, how are your CPA's recommending you do Federal/state tax, etc? (3 properties are in Tennessee and I can file the exemption from franchise tax, but the other two are in GA and the CPA states I must pay GA income tax on these) Forgive me if this does not sound very clear...however, if you've set your business up this way, you will understand my quandary!! Comments welcomed and encouraged! Thanks!
