LLC before or after securing commercial loan?

3 Replies

My partners and I plan to form an LLC but we are also shopping for a commercial loan to finance our first potential deal. Does the LLC need to be formed before securing the loan? Or can it be done while in underwriting or afterwards? Are there pros and cons for when to form the LLC? We are in the Philadelpia area. I am brand new here and appreciate any help!

Originally posted by @Aaron K. :

Do the LLC first, as the lender probably won't be able to approve the LLC until it and its backers are laid out in writing.

I had the same question, so thanks for answering. I also am wondering if I can ONLY do a commercial loan with a property purchased in an LLC, or is there a traditional financing option?

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