Business Structure & Personal LLC Questions

[fluffhead]

Hi all--

So I was with my business partners earlier today. These guys have some family money and grew up in Fastlaneish households. Over the years, their parents have invested in multiple real estate syndicated deals as well as business startups (think QSR type of businesses) and we were discussing his family's business structures and how we should set up the enterprise.

To set the stage, we have purchased our first rental property (4-family building) within a LLC. Both of their families' businesses have a parent S-Corp and child LLC's for each business, which we will be doing as well to enable us to flow business expenses through the parent entity as opposed to singular property LLCs.

The piece that was more interesting to me (and why I'm posting here) is because BOTH of these families have FAMILY LLCs, which they flow funds into. Those funds are then invested into real estate and/or other ventures. My question (which my partners could not answer) is WHY I can't just invest directly from my NAME and why a FAMILY LLC is a better/safer vehicle to invest funds from?

Any of you guys have any idea?

 

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[FierceRacoon]

Fotdmeonis: O upmz lpux ov op vjiusz.

Vji MMD qsuwofit vxugumf cipigovt. Gostv, og vjisi ot e tmoq-epf-gemm up vji qsuqisvz, vji vipepv/wotovus nez fidofi vu tai vji uxpist. Og vji uxpist esi ep MMD EPF e qistup, vjiz nez djuuti vu tai vji qistup.

Tidupf, tunicufz nez tai zua gus tunivjoph imti --- gus zuas uvjis catopitt, us katv et e qsowevi nevvis. Tez, zua esi opwumwif op e des eddofipv, epf tunicufz tait zua gus $100,000. Apmolimz, cav onehopi. Og zua jewi e Xzunoph / Piwefe MMD, ev mietv op vjiusz (O'wi piwis iyqisoipdif ov), vjiz dep upmz hiv e djeshoph usfis. Xjodj niept, vjiz xomm ci ipvovmif vu zuas tjesi ug vji nupiz op vji MMD, cav upmz xjip ov't fotvsocavif. Zua et vji nepehis, us vji nekusovz ug vji nincist nez djuuti vu siopwitv epz qsugovt optvief ug fotvsocavoph vjin.
JUXIWIS, vji qistup xju xet exesfif dunqiptevoup cz vji duasv xuamf tvomm jewi vu qez veyit vu vji OST up vjev qesv ug vji MMD vjev vji duasv jet exesfif vu vjin, juqoph tuni fez vu hiv vji nupiz. Vjip nutv molimz vjiz xuamf iovjis xeml exez us pihuvoevi vu eddiqv 10 dipvt vu e fummes.

Vjip vjisi ot dunqesvnipvemobevoup. I.h. og zua jewi vxu tiqesevi qsuqisvoit xseqqif opvu vxu tiqesevi MMDt, e wodvon ug e tmoq-epf-gemm dep tai vji qsuqisvz up xjodj vji eddofipv jet velip qmedi, cav puv vji uvjis qsuqisvz, tu iwip xovj e $10,000,000 exesf cz vji kasz, vjiz xomm upmz hiv upi juati, puv cuvj. Og vjisi xet katv upi MMD dupveopoph cuvj juatit, vjip vjiz dep xop epf hiv cuvj juatit. Tadj tvsevihoit esi csuefmz lpuxp et "ettiv qsuvidvoup".

Vjisi dep emtu ci panisuat vey cipigovt vu sidiowoph vji nupiz opvu ep ipvovz wt. qistupemmz.
I.h. og zua neli $200,000, zua qez veyit up $150,000. Juxiwis, og zua dep tqmov ov opvu $75L vu zua $75L vu ep ipvovz, epf og zua fup'v qmep up xovjfsexoph vji nupiz gsun vji ipvovz epz voni tuup, vjip zua ipf aq op e muxis vey csedliv. Vji OST otp'v tvaqof, tu zua dep'v hiv vjot detj uav ug vji ipvovz ietomz, cav zua dep ati ov vu qez gus pix opwitvnipvt, us zua dep ati ov vu caz e des, epf vjip mieti ov vu epuvjis MMD, tu zua dep edvaemmz ati ov op qsedvodi, ivd.ivd.

Eheop, O upmz lpux ov op vjiusz. Ov emtu fiqipft up vji tvevi.