I am in the process of writing a contract between My LLC and C-Corp. I will be an employee, with benefits, of this C-Corp. The purpose of the contract is to define responsibilities of the C-Corp for property management, marketing, acquisition, and other functions as needed. I plan to move most of the expense of my LLC to the C-Corp. (The LLC is currently doing these functions with many expenses). I am mostly wholesaling property in the C-Corp so I have very few expenses to offset the income. Does anyone have a similar contract already in place? Would you share this?
WaltB
What does the LLC do now?
yep, you’re basically wanting a management agreement, where the corp is the manager of the LLC.
The LLC does the property management, marketing, acquisition, and other functions as needed.
mcwagner,
The C-Corp manages properties for the Parent LLC(There properties we are holding long term in LLC’s) The benifical interests are owned by the Parent LLC. The C Corp is not managing the Parent LLC.
Does any one have a managing contract they want to share?
WaltB
I am confused.
If the “management” company manages the assets held by the LLCs, then aren’t the direct management costs incurred by the management company passed back through to the LLCs? These expenses are still the LLCs’ expenses for which the management company should be reimbursed (perhaps a charge against the rents collected).
In addition, won’t the management company charge the LLCs a property management fee?
If all the above is true, then I don’t see how your plan shelters any of your C-corp income. Instead, your plan appears to be increasing your C-corp income.
Maybe you still come out ahead by shifting income from an activity taxed at your ordinary income tax rate to an entity taxed at a lower corporate tax rate, though this outcome is not really clear from the information you have given.
I agree with Dave. but the intent may not be to shelter income, but rather to consolidate management for convenience, or to seperate management of the properties (risk) from ownership. both are valid reasons in spite of the tax implications.
Salary and benifits(I plan to be an employee) are the major tools to shelter the income. You are in complete control of who employees are and how much they make and what the company contributes to benifit plan. Unlike S Corps owners don’t have to add back health benifit $$ as income on their personal income tax return. You are also in control of what deals go into the C Corp, what is charged to the Parent LLC and if you have a separate construction company, you have even more control of your “tax dollars”.
This model requires a managment agreement. A standard rental property managment agreement is what I have started with. You guys are really making me think! I like it! 
What am I not thinking of?
salary is subject to FICA as well as income tax. Rental income is passive and avoids SE (FICA). you want to keep as much passive income in the LLC as possible.
Yes, thanks, I was planning on keeping the rental income separate.