Buying a Rental Home through Restaurant LLC
Hello,
I live in California and currently run a small restaurant that is under an LLC.
I was looking to get into buying rental property, would it be possible to use the LLC to purchase rental properties?
I have done some research and I have seen it is possible but most cases you buy it individually and then transfer it.
Thank you for any information or links!
Most Popular Reply
I wouldn't want to put everything in one LLC. The point of an LLC is to protect you, as an individual, from potential lawsuits so that the person who is suing you can't come after your personal assets.
Let's say you buy your property in the same LLC as your restaurant. If a tenant sues you for whatever reason, the tenant can potentially go after your restaurant as well even though your restaurant has nothing to do with your rental business.
If you want to have a property in an LLC for legal protection, I would recommend doing it in a separate LLC from your restaurant one.