Is it recommended to purchase investment properties through person or commercial name and credit?

Asked about 2 years ago - Dover, DE

I am currently trying to purchase investment residential properties for "rental/resale" after rehabbing the property. Would it be better to use my peronsal information to purchase, or would it be better to purchase it through a LLC name? What are the pros and cons for both?

Attorney answers (1)

  1. Reese Serra

    Contributor Level 13

    1

    Lawyer agrees

    Answered . An LLC is better for liability reasons in that, under an LLC, you have limited liability up to your investment. Also, if you have a single member LLC, it is considered a disregarded entity and the income would flow through to you and appear on your personal tax return. From a pure liability perspective, I recommend an LLC. You should contact a CPA though to determine what would be best for your own personal tax situation. It may be that a 2 person LLC works best for tax purposes. Best of luck and happy investing! - Reese Serra

    This advise is only being offered as a courtesy. We do not have an attorney-client relationship and I do not... more

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