I'm looking into setting up a 50/50 partnership with my partner. One thing I'm not too certain of, is what exactly should be done under the LLC name, vs the individual names?
For example, it seems as though the loan MUST be on the individual names (llc is not listed anywhere). Is this true? What about the name on the property? What about other things?
I'm looking for any advice/tips others may have regarding setting up the partnership. I understand you may not be a lawyer, but still appreciated :)
@Steven Rogers the primary purpose of setting up the LLC is detailing and formalizing the responsibilities of each partner. Then you purchase property under LLC, while the lending institute will look at you for financing to the LLC and they might get a personal guarantee from either of both of partners if they desire. All business is done under the LLC.
If your looking for residential financing the bank is going to want the home to be purchased under your personal names.
If your looking for commercial financing you can buy the building in the name of the LLC and get the loan in the name of the LLC but the bank will want a personal guranteee of the loan from both you and your partner.
@James Wise Thanks James, I made an assumption that it was commercial loan. Never make assumptions, never make assumptions...
Yup - it's residential :)
I can understand that the names on the loan is individual -but what about the name(s) that go on the title for the property? Anything else I should consider?
thanks for the responses thus far.
@Steven Rogers If I understand your question correctly, the property would be titled in the name of the LLC - not your personal names.
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