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

Asked over 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

Related Topics

Property foreclosure

If you miss too many mortgage payments, your lender can start foreclosure proceedings to take ownership of the property, but it has to follow your state's laws.

Real estate

The term real estate means land and items permanently attached to it, like buildings. This area of law deals with who has the right to own and use these items.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

18,430 answers this week

2,426 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

18,430 answers this week

2,426 attorneys answering