Is it recommended to purchase investment properties through person or commercial name and credit?
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?
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
This advise is only being offered as a courtesy. We do not have an attorney-client relationship and I do not represent you.