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Real Estate
Management entity separate from ownership

Form a property management LLC. Separate management from ownership.

Sophisticated real estate investors separate property ownership (in property holding LLCs) from property management (in a separate management LLC). The management LLC handles tenants, contractors, repairs, and rent collection; the holding LLCs hold the property. Benefits: liability isolation, S-Corp tax election eligibility for management fees (which generate active income), cleaner books, easier scale.

All 50 states + DC 60-day money-back SOC 2 Type II
How it works

How we handle Property Management LLC, end-to-end.

Sophisticated real estate investors separate property ownership (in property holding LLCs) from property management (in a separate management LLC).

1

Structure design

Two-tier setup: property holding LLCs (one per property) own real estate, generate passive rental income. Management LLC contracts with each holding LLC to manage. Management LLC generates active income (S-Corp eligible).

2

Management LLC formation

Form management LLC (typically in the state where you operate). File Articles, draft operating agreement, BOI report, EIN. If electing S-Corp tax treatment, file Form 2553 within 75 days.

3

Management agreement

Property management agreement between each holding LLC and the management LLC. Standard market rate (8-12% of gross rent for residential; 4-6% for commercial). Generates deductible expense in holding LLC, active income in management LLC.

4

Operational handoff

Management LLC opens its own bank account, takes over rent collection, vendor management, tenant relations. Holding LLCs receive net rental income from management LLC.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent property management llc pricing.

Government fees pass through at cost. No upsells.

Two-tier structure

$1499
Mgmt LLC + 3 holding LLCs.

Complete two-tier structure: management LLC plus up to 3 property holding LLCs. Coordinated formations, agreements, deed transfers. For investors building portfolio.

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Complete portfolio setup

$2999
Mgmt + 10 holding LLCs.

Management LLC plus up to 10 property holding LLCs. Full structure for established real estate portfolios. Includes parent holding LLC above the property LLCs if desired.

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FAQ

About the Property Management LLC Service.

Why separate management from ownership?
Liability isolation (management disputes do not threaten property equity), S-Corp tax election eligibility (management fees are active income, eligible for S-Corp benefits while rental income is generally not), operational clarity (separate P&L), scalability.
What is the management fee?
Market rate: 8-12% of gross rent for residential rentals; 4-6% for commercial. Must be reasonable - if too high or too low, IRS may recharacterize. We use market rates with documentation.
Can I S-Corp the management LLC?
Yes. Management fees are active income, eligible for S-Corp election. Property holding LLCs typically cannot S-Corp (rental income is generally passive). The management LLC structure unlocks S-Corp benefits for active investors.
Do I need a real estate broker license?
If you only manage your own properties, no. If you manage properties for third parties, most states require a real estate broker license. Some states (CA, NY) are stricter. We flag the issue but recommend state-specific legal review.
What about insurance?
Management LLC needs general liability insurance and possibly E&O (errors and omissions). Property holding LLCs need landlord property insurance. Umbrella coverage above both. We coordinate with our insurance partner.
Can I do this with just one property?
Yes, but the cost-benefit only works above 2-3 properties usually. For one property, the formation cost and ongoing admin overhead may exceed the S-Corp tax savings. We model based on your numbers.
Why File.Business

Premium compliance, no service-fee markup.

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SOC 2 Type II audited platform. 220,000+ businesses served. 60-day money-back on service fees. State fees passed through at cost with no hidden markup. Explicit AUP on restricted industries.

A compliance partner, not a transaction

Most providers go quiet after checkout. We auto-track every annual report, registered agent renewal, and license deadline across your entities. The Business OS dashboard keeps your compliance score visible year-round.

Premium experience competitors cannot match

Premium positioning, transparent pricing, no service-fee markup on state or federal filings. Premium positioning, transparent pricing, no service-fee markup on state filings.

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