Understanding LLC Ownership Structures
An LLC may own other LLCs. This structure is called a holding company. An LLC may also own a series of LLC cells, should state statute offer this option.
Missouri LLC Requirements
Missouri requires operating agreements for LLCs. LLCs limit liability for debts and lawsuits.
Starting an LLC in Missouri
To start an LLC in Missouri:
- Pick a name.
- Check if available.
- Appoint a registered agent.
- Register with the state.
- Pay fees.
- Write an operating agreement.
LLC vs. Sole Proprietorship
When an LLC is formed and is designated as the owner of other single member (operating) LLCs, it can file a single tax return which reports all income and expenses from all of the operating LLCs.
Multi-Company Ownership
Yes, one company or multiple companies can own another LLC, which is beneficial, offering increased liability protection and legal entity flexibility.
Series LLCs
Series LLCs are designed to protect one unit of an organization by segregating its assets through a firewall shield.
LLC Membership and Investment
The owners of an LLC are called members, which can be individuals, other businesses, or other LLCs.
Can one LLC invest in another LLC? Yes, through a Parent-Subsidiary LLC structure, where the primary LLC owns at least 50% of the voting stock of the subsidiary.
Asset Protection through LLCs
If someone is injured at one of your LLC-owned properties and sues, only the assets of that specific LLC are at risk. Other subsidiary LLCs and the parent LLC remain protected from liability.
Benefits of LLC Investment
An LLC can buy stocks just like any individual, combining the simplicity of a sole proprietorship or partnership with limited legal exposure.
It is recommended to have a separate LLC for each investment property to maximize asset protection, rather than having one LLC for all properties.