I'll let you know in a few weeks, but with only 5/6 units occupied, it's cash neutral disregarding the capital expenditures.

Not sure how you're getting to the point where you're interpreting net equity on the balance sheet as a loss...If this is a SMLLC taxed as a disregarded entity, you would just distribute the remaining cash to the owner and clear the balance sheet. 

Im a little confused, when the lawyer says classified as an association, is that the same thing as a disregarded entity in texas? 

I sort of get you are trying to avoid single member LLC which for federal purposes is a disregarded entity.

Second, with regard to tax returns, LLCs can be taxed as disregarded entities, so you don't necessarily need one return per entity.

After all, it's a pass through entity, which means the IRS disregards it completely. 

@Pat L. are the LLCs all going to be disregarded entities that flow through up to the master LLC. 

Disregard folks!  

Glad to here that I’m not just disregarding what everyone says you should do.

This only becomes a problem if I try to double up on tax benefits, which I will not.For IRS purposes, a SMLLC is a disregarded entity.