Property Management business tax benefits

[chica0533]

My parents own a few houses. I am thinking of creating an LLC as a property manager to take over the management of the properties. Any suggested tips on tax benefits if I create a business to manage my parents properties? Not sure if this can be seen as a small business and I take into account those tax benefits or if there are some different things about being a California property manager I need to know about. 

[Anonymous_ · Accepted solution]

Since you would be managing property owned by your parents it might not matter much, but property managers in most states need to be licensed. I have to assume California would require licensure.

Further, any tax benefits from starting a property management firm for the sole purpose of managing your parents' properties would probably be more than offset by the fact that you would incur self-employment tax, income tax, and possibly other regulatory taxes and/or fees.