Posted by William Bronchick on February 14, 2002 at 15:59:09:
He is talking about creating Subsidary corporations. I have a better idea: use a single member LLC for each property (or group of properties) and each will be sealed off from the sole member, the other entity. Also, single member LLCs do not need separate tax ID#'s, so it all gets reported on one tax return.
What’s a “division?” - Posted by Matt
Posted by Matt on February 13, 2002 at 16:19:53:
At a seminar last weekend, one of the speakers recommended that I have my corporation create a “division” for each of my properties.
He said that as long as each division has its own Tax ID number, then any liabilities that may arise from one property would be sealed off from my other properties.
I’ve looked all over the Internet, and I can’t find anything that even defines what a “division” is. Much less, anything that says creating divisions insulates other assets.
Does this strategy make sense?