Questions about using LLC for flips...
I know I need to sit down and talk to an accountant before moving forward but I was hoping someone could help clarify a few things for me.
I'm planning on creating an LLC for house flipping. Mainly so I can elect to be taxed as an s corp and reduce some of my SE taxes. I'm going to take out a heloc on my primary to fund the DP and rehab, then ideally pay it back once I sell the home, rinse and repeat.
Can I take out a heloc on my primary under my LLC?
If I take out the heloc in my personal name but use it towards business operations how do I do this on paper? The heloc acc and home purchase would be on my personal credit and not my business credit correct?
To my understanding, if I transfer the home to my LLC I'm not actually transfering ownership so would it still be considered a personal asset vs inventory for my business?
From what I've read it can be difficult to purchase directly under an LLC so most people transfer but I'm not really understanding how it works in regards to accounting.
I want to keep my personal accounts and business seperate but I'm struggling to understand the process in this scenario.