Should my wife and I both be on the llc

[Jornel Lugo]

So before I purchase a multi family home I want to start an LLC for safety and tax purposes . I'm gonna be using my wife as a co-borrower when applying for my home loan so should I include her in the llc as well ?

[Nicole A.]

If you're forming a LLC, then the LLC would purchase the properties and the lender might want the members of the LLC to personally guarantee the LLC's loan.

I'm not sure exactly what tax purposes you're looking for as many LLC's are a pass-through entity, which means the income the LLC makes is reflected on your individual taxes for the year.

For asset protection, if you choose not to do a LLC, you can just have an umbrella insurance policy. Plus, I'm guessing there won't be much equity in your property at least in the beginning, so there isn't exactly much actual asset to sue you for...unless you have other equity-rich assets.

Anyway, I doubt your wife could be a "co-borrower" to a loan that is to a LLC. If you form a LLC, have both of you be members of it. But you'll likely still have to personally guarantee your loans.