Collect Rent through a LLC or personally?
Hi everyone, I am a total newbie when it comes to these kinds of things and I am hoping someone can tell me if this is a good idea or not. My friend and I came to the Idea that we would like to own some real estate together. We are both moving to the Minneapolis area and thought it would be smart to start a LLC for our partnership. From there we starting the home buyer process, got qualified and are now 25 days away from closing on a 4 bed 2 bath house in the metro. The good news is after our monthly expenses we have a couple roommates that are going to completely eliminate any these expenses with their rent to us. Our plan is to collect rent through our LLC even though we bought the home in our personal names. We also plan on paying the utilities for our renters living with us in thought that we can deduct the utilities. Now I know we are super naive but what will happen if we collect rent through our LLC vs collecting it personally? Can someone point out the big differences here?
Thanks in advance,