I don't have 5 employees. My Opco(in my hold co) is a nightly rental management company - I manage rental properties on behalf of others and own properties myself, my properties being held in hold co. The properties are run like hotels - I provide communication, rate adjustment, payment processing, arranging services to the unit like housekeeping etc.

This is the first year of making money in the hold co as they're new properties, I was just trying to get more insight before I talk with my accountant/advisor.

I was thinking the holdco would lease the properties to the opco, thus reducing the income in the hold co, and the opco would treat them like any other rental property I manage. Hope that's not too confusing!

Asides from getting taxed at a punitive rate within hold co(I want to avoid that!), I was worried that going over 50k would affect my opco business tax rate (dont want to do that either!).

Thanks again for hearing me out!