LLC Ownership

[LdiJ]

No apologies necessary my friend. I wonder why my clarification was taken as a 'snitty' response.

It really might behoove you to give some information about why you want to do it. Many people believe LLCs are a magic cure all for things that they don't really do. For example, one of my tax clients had six different LLCs going for things that would have been better handled as one LLC. He was a sales rep and for some reason thought that he had to have a separate LLC for each product he represented. On top of that, all of the LLCs were partnerships between he and his wife, so he has having to pay for 7 different tax returns every year (6 partnerships and one personal) plus keep 6 different sets of books, which he did NOT do very well.

It was only after an audit by the IRS, where after 3 days he got the same advice from the IRS agent that he got from me, was he finally convinced to just combine everything under one LLC.

 

[davew9128]

Is California one of the states being considered?

 

[zddoodah]

Let's say I have a LLC in the state A. I am forming a new LLC in state B. Can LLC A be the owner of LLC B?

Yes.

How the taxes would work in this situation?

Not really sure what you mean by this. Please elaborate.

LLCs are disregarded entities for income tax purposes.

Uhhh...no. Some LLCs are disregarded for federal income tax purposes, but it is absolutely incorrect that all LLCs are so disregarded.

And there are plenty of good reasons why one might to set up multiple LLCs in this way. Since we know nothing about what the OP is doing, we can't possibly know whether it would be a good idea (nor did the OP ask). The OP would be well-advised to consult with legal counsel about this.

 

[Zigner]

Yes.




Not really sure what you mean by this. Please elaborate.




Uhhh...no. Some LLCs are disregarded for federal income tax purposes, but it is absolutely incorrect that all LLCs are so disregarded.

And there are plenty of good reasons why one might to set up multiple LLCs in this way. Since we know nothing about what the OP is doing, we can't possibly know whether it would be a good idea (nor did the OP ask). The OP would be well-advised to consult with legal counsel about this.

This was ALL addressed previously in the thread.

 

[quincy]

This was ALL addressed previously in the thread.

I am seeing an awful lot of echoing of what has been said previously. It might help if, uh, posters would actually read a thread before responding.