How to Structure Taxes for Multiple Property LLCs with a Parent LLC

12 Thanks for the explanation! We haven't made any special tax elections for the parent LLC, so I guess it's treated as a partnership by default. If we wanted to simplify things further, is it too late to elect for the Qualified Joint Venture treatment? And would that be advisable in our situation?

8 It's not too late to make a tax election change! You can generally change your LLC's tax classification by filing Form 8832. For a Qualified Joint Venture election, you don't even need to file a separate form - you would simply file your tax return as a QJV in the year you want to make the change. Whether it's advisable really depends on your specific circumstances. The QJV approach can simplify paperwork, but a partnership return might offer more flexibility for certain allocations and tracking basis. With 6 properties, you might benefit from the more formal accounting that comes with partnership reporting. I'd recommend consulting with a tax professional who specializes in real estate to review your specific situation.

3 Does this service help with state filing requirements too? I have a similar setup but with properties in three different states, and I'm confused about whether my parent LLC needs to file in each state or just where it's registered.

18 Sounds interesting but I'm skeptical. How does this compare to just hiring a CPA who specializes in real estate? I've been burned by tax software before that didn't understand the complexities of property investments.

15 Yes, it absolutely helps with state filing requirements! The system identifies which entities need to file in which states based on where your properties are located. It saved me from missing a required filing in Colorado where I have a vacation rental but my LLC is registered in Wyoming. It's actually designed to work with your CPA, not replace them. Many CPAs actually use the platform themselves because it helps organize everything clearly. In my case, I ran the analysis first, then shared the report with my accountant who was impressed with how thorough it was - it caught a couple things he had missed about entity classification in multi-state situations.

22 How does this Claimyr thing actually work? Are they just calling the IRS for you? Couldn't I just do that myself instead of paying a middleman?

18 Yeah right. Nobody gets through to the IRS in 45 minutes these days. I've been calling for months about an LLC issue and can't get anyone. This sounds too good to be true.

5 They use a combination of technology and timing to navigate the IRS phone system more efficiently than we can as individuals. They essentially hold your place in line and call you when they're about to connect with an agent. Technically yes, you could do it yourself if you have hours to spend calling, navigating phone trees, and waiting on hold. For me, it was worth it because I had already wasted multiple days trying to get through myself. They connected me with an actual IRS specialist who understood LLC structures specifically.

16 Do you use a specific software for keeping separate books for multiple LLCs? I've been using QuickBooks but it gets expensive with multiple companies.

7 I use Stessa for my rental properties - it's specifically designed for real estate and allows you to track multiple properties and entities. It's much more affordable than having separate QuickBooks accounts for each LLC. For non-real estate businesses, I've heard good things about Xero which has better multi-entity functionality at a lower price point than QuickBooks. The key is making sure you have clean, separate financial statements for each LLC that clearly show income, expenses, assets and liabilities, regardless of which software you use.

1 That's a really good point! Does anyone know about Texas requirements for multiple LLCs? We're paying the franchise tax for our parent LLC, but I'm not sure if we need to file anything for the property LLCs too.