Yes, thank you! WY, LLC is a holding company for 2023 and TX, LLC is managing and is doing all operating transactions and lease agreements. It has the money from operations in the bank.
So if I file business operations activity under WY, LLC and let's say my first 1065 gets audited, they will ask for a closing statement (which I have in the name of WY, LLC), and may audit bank account statements with expenses... which WY, LLC does not have. What to do about it?
Yes, you are right, in 2023 WY, LLC was formed by mistake as a 2 partner entity. I did not pay attention that WY is not a community property state, so WY, LLC can not be treated as disregarded entity. A single member holding WY, LLC will be formed that will own a new holding TX, LLC. And the property will be transfered to this new TX, LLC, preserving anonymity of ownership as WY, LLC does not disclose it. An existing operating TX, LLC will run business and everything will be considered as disregarded entities (both TX, LlCs and a WY, LLC), with filing income of 1040 Sch E. It is just last year I messed up setting up a WY, LLC as a 2 member company that is required to file a 1065. Dang!
