I am about to purchase my first rental home. I do plan to purchase more in the future. My question is, when starting this, do I buy personally or start a LLC? Commercial loan rates are higher than personal, however I want to protect my personal asserts as well. And I want benefits tax purposes wise. (I am in Louisiana.) Any suggestions/advice?
I would suggest doing a quick search...
You will be able to read through hundreds of posts about LLCs.
Creating an LLC may provide legal protection(something to discuss with an attorney) but it will not provide additional tax benefits.
You are entitled to the same tax benefits, with and without an LLC.
@Jessica Shell many factors are to be considered, like how big do you plan to grow? How much do you have to protect now?
Financing is cheaper if you do it personally vs using an LLC. You probably save 1 point on the interest rate versus commercial lending. You can overcome the legal risk of not having an LLC with a large Umbrella Liability Insurance Policy, if you are worried about that.
I started off buying the rentals under personal name, then Quit Claimed to an LLC once I had a couple.
No LLC for me if buying residential property with financing.
There is a thread now going on accenting the multiple problems with that and using a lame deed to transfer like the quitclaim. "Transferred to an LLC and bank is giving me issues." I think it's called.
Cash buy or commercial property? LLC all the way. Depends on asset type and whether financing is involved or not.