I own several rental properties with a friend. A tax advisor recommended using the following strategy:
One company for me, call it "Person A LLC" and one for my partner, "Person B LLC".
Then one holding company for each rental property.
I'm sold on having one holding company for each rental property to minimize risk. Not totally sure what owning all of the rental companies through "Person A LLC" gets me?
Accountant said using this structure we would each have more flexibility on how we are taxed, I guess as an scorp vs pass through. Does this make sense? Are there other advantages / disadvantages?