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?

Dover, DE -

Attorney Answers (1)

Reese Serra

Reese Serra

Commercial Real Estate Attorney - Rochester Hills, MI
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
Mark as helpful

Questions? An attorney can help.

Ask your questions on our Q&A forum. It's free and anonymous.

Ask a Lawyer

Need to find an attorney? Browse our lawyer directory.

Find a Lawyer