Question by  RobertJamey (124)

Can one llc be owned and operated by a second llc?

In tax accounting can you have a tiered structure to wear one limited liability company owns the second one?


Answer by  gleverance (720)

Yes you can, there is nothing in the IRC tax law that prevents one limited liability company from owning, in whole or in part, a second one. You just have to make sure that the tax returns are correctly done.It would be a good idea to consult with a CPA or attorney.


Answer by  Att4372 (1704)

LLC laws vary state to state. In general, any entity - individual, corporation, trust, partnership, or LLC - can form / own part of a Limited Liability Company (LLC). Because an LLC is a pass-thru entity, transfers of ownership interest can be difficult. If one owner of either LLC changes, it can affect the other LLC.


Answer by  BrianSJ (524)

Yes, you can have a tiered structure in which an LLC owns part or all of one or more other LLCs. There is no inherent limit to the layers of LLC ownership.


Answer by  tamarawilhite (17883)

Yes, this can be done. It is a frequent practice in conglomerates, or when an investment bank owns a real estate investment trust. However, depending on the state where you operate, taxes may be owed on each level of the llc.

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