Can an LLC Own Another LLC in PA? Can an LLC Own Another LLC in Pennsylvania?

  • An LLC can own another LLC in Pennsylvania. LLC members can be individuals or entities like corporations or other LLCs.
  • The PA Department of State website guides you through LLC registration. Their wizard checks name availability.
  • If the IRS does not require an LLC’s EIN, the PA Department of Revenue will not either.
  • Few limits exist on LLC membership; members can be other businesses, individuals, or LLCs.
  • Forming a master LLC with subsidiary LLCs minimizes risk if one subsidiary LLC struggles.
  • Real estate companies often use this structure, with each building as a separate LLC under a main holding company.

1) Review the Operating Agreement outlining transfer procedures and restrictions.

2) Consult a lawyer on properly structuring the entities for your goals. Operating agreements are crucial.

3) There are benefits to an LLC owning another LLC. For example, it provides additional liability protection, letting owners run diversified businesses without jeopardizing each other. With apartment complexes, each can be a separate LLC under a primary one.

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