LLC Ownership Structure
Any LLC can own another LLC to form a holding company. The owner LLC is the master and the subsidiaries are LLC cells. LLC members can be individuals, corporations, or other LLCs. If one business fails, others are protected. Real estate investors, developers, movie studios, and others with risky ventures do this.
Benefits of LLC Owning Another LLC
- Asset Protection Isolates Risks
- Separates Markets, Products, Activities. Ensures Focused Management
An LLC owning another has benefits like limited liability and protection for personal assets from debts and liabilities. For example, separate restaurant and clothing store LLCs allow protection if one faces financial challenges. Consult an attorney for proper structuring.
Benefits of LLCs Owning Each Other
LLCs offer limited liability, tax perks, and flexible management. Owning another LLC provides benefits like asset protection, tax efficiencies, and business growth. Ensure legal compliance and manage complexity when structuring LLCs this way.