2 LLCs, formation questions

[iwalmsley]

Iowa....

I have 2 LLC's already formed in the state of Iowa. I am creating a new LLC this month in to become the Holding company for all shares of both LLCs. I want the new LLC to have control of the operations and management of the individual LLCs, but I want the "structure" to be different in the seperate LLCs. Is this possible?

One LLC acting as Holding/Management company, owns 100% shares in both individual LLCs, with the ability in the future to sell of possible share of the individual company, while the remaining shares are owned by the Holdings company.

Thanks.

 

[seniorjudge]

Yes, that is certainly possible.

You have cleared this with your tax CPA, I am assuming.

 

[iwalmsley]

No, I haven't made any changes yet.. With now making it complicated I am looking for lawyer for the business as well as a CPA.

Could you explain any detail? What do I need to make sure I do to make it legit and legal. Any paperwork, types of documents or is pretty simple...

 

[seniorjudge]

No, I haven't made any changes yet.. With now making it complicated I am looking for lawyer for the business as well as a CPA.

Could you explain any detail? What do I need to make sure I do to make it legit and legal. Any paperwork, types of documents or is pretty simple...

You will need a lawyer and a CPA. Good for you.

Your third LLC will hold the property, which is the two other LLCs.

An LLC can own anything, including other LLCs.

I am no really sure what else you need to know.

So ask away.

 

[iwalmsley]

I really appreciate the information...

Of course I will be using a lawyer to make everything official I am just trying to get a better understand how it will look on paper.

Do I sell the single company shares or 'interest' to the holding company to show ownership? Is that documented like a bill of sale?

I am assuming, again I will be using a CPA for "official" clarification, but in my mind, i could transfer the profit/loss of both companies to the single holding company, which then passes to my individual tax return, is this correct?