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Richard, Tax Attorney
Category: Tax
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Experience:  29 years of experience as a tax, real estate, and business attorney.
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What is the best way to structure ? We technically have 3

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What is the best way to structure ? We technically have 3 businesses. Two rental properties and wife is planning to acquire small retail store. We have been renting these vacations as persons... not good idea I know. the store is currently a C-Corp but once we own it we can do whatever we like. I think it is time to organize these 3 things but not sure what is the best structure. My idea is one LLC that just have different divisions. Alternatively 4 LLC's with one holding company. or One LLC Holding with 2 LLC and 1 CORP. With store being high number of transactions, inventory, etc. this gets complicated. What are some good suggestions that would make TAX sense and accounting easier.
Hi! My name is XXXXX XXXXX I look forward to helping you!

You definitely want these business in limited liability entities. And, you want them in flow-through entities so that you don't risk being taxed twice. Forming LLC's for each entity is your best solution in my view. Texas is a community property state so if you and your wife are the only owners of the LLC's, each LLC can be treated as a disregarded entity for tax purposes which means that you won't be required to file a separate tax return for each entity; rather, you can simply report their operations on your Form 1040. The reason that you want a separate LLC for each business is so that if you have a problem with one business, it won't contaminate the others. After all, you are setting these up to limit your liability so you don't want to put them all in the same basket.

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Customer: replied 3 years ago.

i sent another question for you. Non related. about Aunt.

Thanks so much for the positive rating and bonus! I appreciate your kindness!

I have responded to your other question....I needed a bit more information. Thank you!!
Hi...I responded to the other question in the thread for that question. Please let me know if you don't receive it and I will post here. Thanks!

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