I use the non-Series LLC as management company for my Series LLc (I flip/remodel/build houses -- each property is held as its own Series until sold) and I handle Real Estate and mortgage transactions; no rentals. My RE business is 1099'ed to me personally. Both LLC's are single-member, so basically, sole-prop.
Can I just lump all of my expenses under the non-Series LLC and do 1 Sch C for all?
Or do I need to separate Sch C for each LLC - and one for my RE business (3 total)?
In years past, I had a CA LLC for my flips and then did my RE deals as sole-prop - filing 2 Sch C's. But now that I have the TX LLC managing everything, wondering if that would be more-likely to create an audit situation (to make sure I'm not double-dipping)?
Most of my expenses for Office, Transportation, M&E, Marketing, etc. all blend together. I started to break-out expenses (both itemizing individual M&E's and halving things like Office Supplies/Cell Phone/Website) for each, but it's time consuming and I may be creating more audit risk.
Anyone have a similar experience?
The Series LLC is relatively new and complex entity. I recommend you consult a local tax profession and or attorney with experience dealing with Series LLCs. The tax treatment of Series LLCs and series by both the IRS and state tax departments is somewhat unclear. States do not have uniform and consistent tax guidelines. In some states a Series LLC is one taxable entity. In others, they are viewed as multiple taxable entities. As for the federal income tax treatment, the IRS has not issued final rules on the subject. This is something you need to get right from the beginning.