Personal Name Or LLC
I am getting ready to purchase my first property. I am trying to find out which to do. I already have a legal LLC that I use for another business venture. Are their benefits to using the LLC for property deals. I am going to have to use my name for the $$ as the LLC does not have enough credit to do it solo.
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I forgot to mention, the main reason I was thinking of the LLC was to protect the liabilty issues, not tax.
Thanks[ Edited by ejm4 on Date 12/17/2004 ]
The LLC can be helpful. Should you get sued based on your LLC assets (e.g. a slip and fall accident in one of your properties), only the assets of the LLC are at risk; i.e. not your personal assets.
However, if you default on the mortgage, you'll be personally responsible for the loan (because you'll have a "personal guarantee" on the note).