Hacker News Reader

> I am just going to drop The We Company’s org chart here because it honestly leaves me speechless...

Indeed, I suspect that kind of a weird org chart of inter-related legal entities is pretty typical for a real estate company... because, as the OP suggests, that's really what they are.

View on HN

Also morbidly fascinating is why real estate companies are so much more into compartmentalizing themselves into all these LLCs/LPs/corps. Most of the time they seem to do it to maximize the tax advantages and entitlements (and contain losses) in specific locales. In California, most commercial buildings are held by a trust designed to never transfer majority control, to preserve Prop 13 property tax breaks.

I think it also pertains to how individual deals sometimes include additional investors or other parties to the deal/transaction, e.g. the parent company partners with another local company for a specific deal and thus creates a separate LLC/LP for just that deal.

Reply on news.ycombinator.com