WITAXLADY Posted September 10, 2019 Report Share Posted September 10, 2019 A number of different different partners and partnerships/LLC's want to join up into one parent company - probably as a S corp They do rental properties, fixer ups - buy and sell So 2 of the individuals want to contribute/transfer their property from their personal into a LLC under this main umbrella. (forming a 4th LC or putting into one of the existing LLC's) Will they sell it? and then pay tax on the gains? have to do an appraisal? Or just a transfer fee? The other 3 LLC's will keep their properties and file under the main S corp operating as multi - businesses/parent company Is that fine? What do you recommend is the best way? Thank you, Darlene , ATX WI Quote Link to comment Share on other sites More sharing options...
Lee B Posted September 10, 2019 Report Share Posted September 10, 2019 Usually an S Corp would not be desirable in this situation, because down the road if any of the properties need to distributed back out to any of the partners, departing or otherwise the properties have to come out at FMV which could trigger unwanted taxable income. You don't mention, "What is the rationale for these partners to combine together ?" The combining of partners and LLCs into one umbrella organization seems to me to be overly complicated both for both accounting and tax purposes. Inevitably, with this many individuals involved, one or more partners will need to leave whether because of death, financial problems, disagreements etc.. Getting this many individuals headed in the same direction would be like herding cats or watching a train wreck ! 5 Quote Link to comment Share on other sites More sharing options...
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