So I'll be making my first purchase soon and my goal is to keep all my expenses/income within my business bank accounts (separate from personal accounts) so I can more easily and accurately analyze the performance of my investments. I created an LLC but this first purchase will initially be under my name with the hope that I can transfer it to the LLC at a later time.
Is it ok for me to make any payments/purchases and receive any payments related to this investment with my business bank account even though the title will not be under the LLC yet?
@Jeff Mills I did exactly that! I purchased my properties in my name. I have 3 Section 8 SFR. St Petersburg Housing Authority is making payments to my LLC (Direct deposit into the LLC Wells Fargo Checking Account). Insurance is under the LLC as well.
I want to Quit Claim the properties into my LLC but now I'm told the lender won't lend to an LLC (Mortgage Broker told me I wouldn't have a problem). Why are you going to purchase this investment in your name instead of the LLC? I would have done just that but I hadn't formed the LLC in time.
I got pre-approved by the lender before forming the LLC and just didn't think to get the LLC pre-approved. And as I should have expected that pre-approval didn't allow for me to purchase under the LLC. I didn't have time to go through the process for my LLC and I suspect I probably wouldn't have gotten as good an interest rate.
I'm just wondering if there are any legal or tax issues with making any transactions through that LLC's accounts even though the title is not under the LLC.
You may want to connect with the attorney who set up the LLC.
LLC's are normally created to limit liability.
The actions you are doing may risk you losing the ability to limit your liability exposure.
@Jeff Mills You could have an agreement with your LLC so that it manages the property and collects all money and pays all bills.
You should consult with an Attorney who is familiar with this area of the law. I have been told by an Attorney that I trust that, in order to keep the protection of the LLC, you should keep all financial transactions of the LLC separate from your Personal Accounts.
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