Can one LLC own another LLC?

Yes,an LLC can be a member of another LLC. It's often called a parent-subsidiary structure. The parent LLC owns membership interests in the child LLC. You'd need to check your state's LLC act, but most allow it.

It's allowed in most states,but the paperwork can get confusing. You have to make sure the operating agreements are clear about who has authority. Also, if the parent LLC is taxed as a partnership, the subsidiary might be treated differently. Worth talking to a CPA.

My accountant set up a holding company LLC for my two businesses. It owns both. Works fine, but I pay more in annual fees and filings. Not a big deal if you gave a good reason.

What are you actually trying to achieve?If it's just asset protection, a separate LLC for the equipment might be overkill. Insurance could be cheaper. But if you have multiple rental properties, a parent LLC can simplify management.

Also, be careful about piercing the veil. If the parent LLC doesn't respect the subsidiary's separate identtiy (commingling funds, no separate records), a court could disregard the structure. You need to treat the child LLC as its own entity.

I looked into this for my consulting biz. The lawyer said it's fine but warned that some banks get weird about opening accounts for an LLC owned by another LLC. Extra documentation. Just a heads up.

One more thing: if the parent LLC is owned by you personally, you'll still have to report the subsidiary's income on your personal return if it's a disregarded entity. The structure doesn't change the pass-through taxation unless you elect corporate treatment. So the tax benefit might be minimal.

Honestly, for a handyman business plus one rental, I'd keep it simple. Two separate LLCs owned by you directly might be easier than a parent-child setup. Less paperwork, fewer fees. The parent LLC makes more sense when you have several businesses or want centralized management ngl.