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Is there a difference between a holding company and a LLC used to manage other LCC's (real estate purchases).
Anonymous4 views2 answers
Would the managing LLC be the holding company or is a holding company's purpose something different than to manaing companies and corporation. I want to form a LLC to manage real estate purchases in various states. I have not partner an don't know if it would be beneficial for me to form a Nevada Management Trust or Limited Liability Limited Partnership at this juncture. The each real estate purchase initially will be less then 20K. Could I restructure the business entity at a later date in a LLLP or NMT or something else more beneficial tax wise/liability. I am a novice.
To respond to your question, some attorneys may advise you to separate the management and the holding to keep separate liabilities. However I wish to piggyback on Mr. Doland's expert reasoning. Maintaining interest (and intellectual grasp) in these complex legal subjects is paramount. It shows that you want to keep control of your business. However, you are driving yourself in to a "cul de sac": looking for legal and tax advice ... or spending years in trying to become an attorney with corporate and tax knowledge. The information you are looking for is publicly available (you can even go into a law library and try to understand things by yourself), but as an entrepreneur you need not only time to run your business but reduce more importantly your business risks. Please allow me to ask the following: How are you going to manage your time? How can you run your business if you want to acquire the same level of expertise of an attorney? How can you reduce your business risks if you intend to take choices so complex without the support of an expert? If I were you, I would look for the advice of more than a single attorney in your locality. Good luck!
