Re: One entity is OK - Posted by Rainbow
Posted by Rainbow on May 11, 2006 at 12:30:13:
I have to agree with you, but you better keep very clear paper trail in every transaction…good records. As long as you can explain it to the auditor and is kept simple then one entity is fine.
There maybe valid reasons to have an LLC for keeper and an S corp for flipping. Depending on income, number of properties, etc, there might be valid reasons to have a complete network of entities.
You—>Family LLP or Family LLC—>Single-member LLC—>Land Trust
In the above scenario there would be a Land Trust whose beneficiary is a single-member-LLC for each and every property. All the Single-member-LLC’s would have a Member the LLC or LLP.
Sounds complicated and expensive, but is really not that bad.
That could give you the maximum liability protection as well as maximum privacy.
Only you, your CPA, and the IRS would know who is who.
Tenants don’t have to know, buyers don’t have to know, sellers don’t have to know, etc.
Of course, you can KISS!
(Keep It Simple Stupid)
I guess it depends what comfort level you have regarding privacy and liability.