Construction Financing-personally Or Through Business?

We are starting construction of our first spec home in Washington State. We purchased the land based on a home equity line of credit on our residence. We have secured consruction financing for the spec home. Question, should we transfer title of the land to the S Corp and obtain our construction loan in same? or are we better off keeping the land in our personal name, and obtaining financing on a personal basis as well?

Comments(2)

  • NC_Yank23rd March, 2005

    You really need to speak with your accountant...........I suspect that he/she will tell you if its going to be an on going business then you should set up an S-corp and put it in the business........this being your first they will probably leave it as it is.....

    NC

  • communityinvestments23rd March, 2005

    eliminate personal liability as often as you can! Do it under your corp.

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