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Updated over 9 years ago on . Most recent reply

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Amaya T.
  • Jericho, NY
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How can I separate myself from LLC yet still purchase w my money?

Amaya T.
  • Jericho, NY
Posted

Newbie question. Forgive me if already posted. 

I'm looking to start investing but am a bit confused about asset protection via LLC yet using my own funds and credit to purchase a property.

My plan is to follow the BRRR method

-purchase for cash

-renovate

-rent 

-refinance 

However, I want my LLC to own the property, not me the person.

Do I lend my LLC money? Again sorry for sounding so ignorant but I don't know where to look for this type of information

Most Popular Reply

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127
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Jeff Robert
  • Real Estate Agent
  • Grand Rapids, MI
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127
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Jeff Robert
  • Real Estate Agent
  • Grand Rapids, MI
Replied

Hey @Amaya T.. an LLC is a pass-through entity, so you dont really need to lend it money. As money flows in or out of the LLC from its members, its simply noted as a LLC Contribution or Distribution, it has no real affect on taxation unless partners are involved or income exceeds 250K. Be sure to setup a separate bank account for your LLC, it helps prove to the IRS (if they ever take notice), that your business is legitimate and distinct from personal finance activity.

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