LLC for Tax purposes on Rental property.

[Stephen Coady]

Any help is appreciated.  I have just put in an offer on my first townhouse in Birmingham, AL.

In the event that it moves forward, I was hoping to get some advice on how to bank my rehab expenses and income. I already have an LLC set up from a previous small business I owned but it is currently inactive.

Should I put all of this under an LLC or Personal? Pros and cons to each?

Thanks,

Stephen

[Natalie Kolodij]

There is literally no tax difference. 

If you QC it to your LLC your bank could potentially call your loan.

Also, I'm not an attorney so check with one- but it you recycle that old LLC any liabilities related to it are still open. So for example if someone sues your old company they have access to your rental is my understanding.