Business operations with 3 investors

[Charlie Redding]

Hello all,

I'm one of three partners purchasing a duplex. We formed an LLC but from what we're finding out we can get much more attractive financing if we purchase the property in our three personal names.

My question, is how should we structure the operations of the business? Can we have the operations in an LLC (rental income, business expenses, etc.) while having the property held in our personal names? Or should we maintain our books separately and just ditch the LLC as the property is in our personal names anyway?

Any advice is appreciated.

Thanks!

[Steve Vaughan]

Thanks for chiming in @Steven Hamilton II.  I respect your opinion.

An immediate QCD will not only most likely violate the DOS, but will definitely muck up / negate the title insurance and hazard insurance that was just issued in their name. More to that than just taxes.

I only spoke to how I handle things in WA. TICs are good here. Starting out, a partnership will be clean to dissolve if it doesn't look like it will be ongoing. RE LLCs are a pain in this state. Quarterly B&O tax reporting requirements will get old real quick. Much easier to just file for a mgt operations LLC than a real property one.

Either way, good luck @Charlie Redding!