Can an LLC own another LLC?

Yes, an LLC can own another LLC. This is called a parent-subsidiary structure or holding company arrangement. The parent LLC (holding company) owns membership interests in one or more subsidiary LLCs, creating separate liability shields between each entity and the parent's other assets.

Common use cases: real estate investors (one holding LLC owns multiple property LLCs), franchise operators (parent LLC owns each location as a separate LLC), and businesses wanting to separate high-risk operations from valuable assets. Tax treatment: if the parent LLC is the sole member of a subsidiary LLC, the subsidiary is a 'disregarded entity' for tax purposes and its income flows up to the parent. If the parent owns less than 100%, the subsidiary files its own partnership return. Formation process: simply list the parent LLC as the member/organizer when forming the subsidiary. Each subsidiary needs its own EIN, bank account, and registered agent to maintain the liability separation.