Updated about 6 years ago on . Most recent reply
Is it worth shifting to LLC?
Hi Everyone,
I am on the fence here (and still somewhat of a novice) - we have invested out of state for many years with family (sweat equity, agents in family, all members invest).
I am wanting to scale up my access to liquid funds, and currently exploring some creative financing options with what I have already. I own one rental in my name, and have been funding flips also under my name (same area). The rental has a good amount of equity, and the market is strong for both holds/flips.
The relationships with Lenders, Agents, Contractors, etc in the area are solid, so typically no surprises come up for anything.
-> While I could pull a HELOC on the rental, I am wondering if it would be worth shifting that to an LLC and pursuing Commercial LOC?
-> Has anyone done this shift with a long term rental under your name? If so, what are some things to watch out for?
-> In your opinion, is it worth doing for a single rental? If not, at what point does it make sense?
-> What are the tax implications of a shift from personal to LLC? (Currently doing research for this, and talking with my Accountant this week).
I am sure there might be some clarifying questions asked here, but thank you for taking the time to read!
~Ryan