I plan to form a LLC to manage (holding company) individual LLC's (real estate purchases). Should I form initial LLC in Nevada?

Asked over 2 years ago - Scottsdale, AZ

I am an indiviual with no other partners. Are there more benefits (tax) to forming the managing LLC in Nevada than in my home state of Arizona. I plan to purchase the properties in different states.

Attorney answers (3)

  1. Brandon Kavanagh

    Contributor Level 12
    Best Answer
    chosen by asker

    Answered . While Nevada may be a better place to form the LLC by the other posting attorneys' opinions, do miss that the IRS considers a single member LLC to be a disregarded entity for tax purposes. If you do all the planning and work in Nevada for tax benefits, but do not have an additional member for your LLC, then you may well have made your efforts for nothing. You should discuss with a business attorney licensed in Nevada (if that is what you wish to pursue) about how you can be sure to structure your LLC so that it is not considered a disregarded entity for tax purposes as that is a federal tax issue and not a state of creation issue.

    Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does... more
  2. Robert A. Stumpf

    Contributor Level 19

    1

    Lawyer agrees

    Answered . I would likely say so, yes.

    This is AVVO, a place for users to obtain general legal information to general legal questions. I am glad to help... more
  3. Michael Leo Potter

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Nevada law offers several advantages. (1) It was the first in the nation to offer the 'Series LLC' (2) It was the first in the nation to apply the 'Sole Remedy Law' to LLCs in order to limit the remedies available to predatory adversaries (3) The privacy of owners is well-protected and (4) the asset protection laws of Nevada are second-to-none.

    While you certainly have no legal barriers to having the other LLCs 'managed' by a single Nevada LLC - you may want to consider having the other LLCs owned by a Limited Liability Limited Partnership or consider having the LLCs managed by a Nevada Privacy Management Trust. If you'd like help looking at Nevada options, let's arrange a phone consultation.

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An LLC (limited liability company) is a business entity that has elements of both a corporation and a partnership (or sole proprietorship).

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