Putting Managed Vacation Condos Into An LLC
Here is one I haven't seen answered in the forum and I really need to know since I intend to have some of these as REIs. I am a newbie, so bare with me.
I have been looking at some good opportunities in vacation condos at resorts. Although the condos are privately owned, they are subject to the resort's HOA and management company fees.
However, my holding LLC is set-up as required--with an unpaid manager. I would like to transfer these resort properties, via land trust, into one of my operating units.
Does the fact that I will have to pay the resort's HOA and management fees affect my company and break its protection, or does the fact that my LLC has an unpaid manager assigned to manage this property maintain the legality of the LLC? Should each of my operating unit also have an unpaid manager assigned to further protection?
My company structure is set up in Delaware which allows a single holding LLC to house multiple separate operating entities (units). Each unit owns its own assets and incurs its own liabilities. Each unit is a separate legal entity, therefore the other units are not liable for its debts. Basically, it is equivalent to having multiple LLCs in a holding LLC.
Any help would be greatly appreciated.
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