In case it makes a difference, for taxes, the Landlord LLC is a single-member disregarded entity, while the Holding LLC is taxed as a be rather skeptical that a Service Agreement is a magical cloak which makes everything 100% deductible for the entity paying the bills. $250 in Member non-milage travel expensesĬan the Holding LLC just categorize all of that as a Service Agreement expense, or would they have to be categorized as though the Holding LLC had incurred them itself? My question is if the payments from the Holding LLC under the service agreement have to be itemized or if I can just lump them all as an expense under the Service Agreement with the invoice as the supporting documentation?įor example, if the Landlord LLC incurs $2000 in expenses for the month.
The Landlord LLC provides the Holding LLC an itemized invoice each month which the Holding Company pays. Additionally, since we have a tax-exempt Amazon Prime account, when the Landlord LLC purchases items from Amazon, it marks them up 10% and charges them to the Holding LLC. Examples of this are milage related to operating our facility, large purchases, and the travel expenses of Holding LLC Members who are traveling to our location out of town. Part of the service agreement is that the Holding LLC will compensate the Landlord LLC for expenses incurred while functioning as the landlord. I have a Holding LLC which leases equipment, off-road vehicles, and buildings to a subsidiary LLC which functions as a landlord for the other operating subsidiary LLCs as part of a service agreement between the Holding LLC and the Landlord LLC.
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