Can one LLC legitimately pay another LLC I own?

yes, it can be legitimate, but you must treat them as separate entities. A written lease or rental agreement between the two LLCs, fair market rent, and actual payments from one bank account to the other are the basics. Without that, it looks like moving money between your own pockets.

Does the consulting LLC actually need a home office?If it's just a desk you occasionally use, the IRS might not accept the deduction anyway. The inter-company payment doesn't fix a weak underlying expense.

I've seen this go badly when people skip the paperwork. My accountant made me set up a separate bank account for each LLC and a simple invoice system. Now the consulting LLC pays rent monthly and both LLCs file their own returns. It's more admin but cleaner.

It doesn't trigger anything weird by itself. For federal tax, both are disregarded entities by default, so the payment washes out on your personal return. The main risk is state-level or liability issues if you don't respect formalities. Keep minutes or a written resolution authorizing the arrangement.

Wait, if both are disregarded, is there even a point? The rent deduction on one side and rental income on The other net to zero. The real benefit might be liability separation, not tax savings.

There can still be a point for self-employment tax if the rental LLC makes an S corp election, but that's a bigger step. For most people with two default SMLLCs, the inter-comp any payment is more about bookkeeping and liability than tax. I'd talk to a CPA before setting the rent amount

Also check your state's rules on self-dealing or required annual reports. Some states are pickier than others. And make sure the rental LLC actually reports the rent as income.