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Innovative Strategies

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Jay J.
  • ., OH
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Creating business (LLC) credit & renting from yourself

Jay J.
  • ., OH
Posted Aug 10 2015, 11:02

ok, I'm not sure what other (sub)forum this would go in, but I guess it could be an innovative strategy, so here goes my basic idea.


1. I have a house worth $140k, I owe $100k.
2. I have an LLC with nothing (no credit card, no assets)

I understand (generally) that in order to initially get 'business credit' for the LLC one must use their own 'personal credit' to secure a loan.  So, what if..

I sell my house to the LLC (assuming financing worked - this would mean the LLC gets financed for my house, with my credit, but the house belongs to the LLC, is that correct?)
Then I rent my house from my LLC.

Wouldn't that start the 'building business credit' process? as well as giving the LLC an asset?

Thoughts..??

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