Can a Corporation create an LLC? - Posted by Keith (IL)

import · January 21, 2002, 8:44pm

Posted by Keith (IL) on January 23, 2002 at 08:38:36:

John YOU’RE AWESOME DUDE!! Thanx!

import · January 21, 2002, 8:44pm

Posted by Keith (IL) on January 21, 2002 at 21:44:40:

Hello,

Hope someone can help me, I’m wondering can a corporation create a LLC in the state of Illinois and if so how can that benifit a real estate investor particularly one that is doing many flips?

Thanks Much!
Keith

import · January 22, 2002, 2:54am

Re: Can a Corporation create an LLC? - Posted by JHyre in Ohio

Posted by JHyre in Ohio on January 22, 2002 at 03:54:23:

Yes, it can. The only reason a flipping corp would create LLCs would be to provide multiple levels of liability protection, as opposed to having all of the properties in one basket.

John Hyre

import · January 22, 2002, 12:28pm

Re: Can a Corporation create an LLC? - Posted by Keith (IL)

Posted by Keith (IL) on January 22, 2002 at 13:28:00:

Thanks John for your reply!

So should I…

1.) Should I deed the flip property to my LLC after acquiring it in my personal name (since my hard money lenders are not interested in funding the LLC entity directly)?
2.) And lastly, should I create a serparate individual LLC entity for each flip property the C corp simultaneously owns?

Thanks Again!
Keith

import · January 23, 2002, 5:33am

Re: Can a Corporation create an LLC? - Posted by JHyre in Ohio

Posted by JHyre in Ohio on January 23, 2002 at 06:33:09:

Does Illinois exempt contributions to wholly owned entities from transfer tax? Call the local auditor’s office to find out. If yes, deed directly to LLC, but make sure that the paperwork reflects contribution to corp and then to corp LLC sub.
Probably not…sounds like alot of hassle and expense for a fairly minimal benefit (separate bank accounts, etc.). In fact, I would only consider a separate LLC for keepers…and even, then I’d put several keepers per LLC. I simply don’t view the hassle being worth the additional increment of protection that the corporation already provides in the case of flips. Your mileage may vary.

John Hyre