LLC for receiving rent

7 Replies

What purpose will it serve? I personally own rentals and have tenant checks issued to me personally. It's part of my overall wealth account with the bank where fees are waived. For an LLC account, I pay fees, in fact higher fees as a commercial account.

o Originally posted by @Chad Trail :

IMy thought was that I could show revenue n my business account and start building business credit.

Chad, I see where you are coming from. 

Having LLC does not equal business to get a business loan/credit.

What is the purpose of the business? Does collecting rent in the LLC acts as a business? Will you run this as a business as Property management company? Will you actually do property management for others property and when you go ask for a business loan can you show them your business plan as PM company and your business plan and forecast?

Maybe you are trying to present your portfolio as a well-run business/investing. That can be done with good bookkeeping and portfolio presentation. 

Not saying LLC is not worth it. After considering other factors ( loan due on clause, cost of LL) maybe have the properties in the LLC and collect the rent via LLC to run like an RE investment as opposed to PM by just collecting rent.

o Originally posted by @Chad Trail :

IMy thought was that I could show revenue n my business account and start building business credit.

Chad, I see where you are coming from. 

Having LLC does not equal business to get a business loan/credit.

What is the purpose of the business? Does collecting rent in the LLC acts as a business? Will you run this as a business as Property management company? Will you actually do property management for others property and when you go ask for a business loan can you show them your business plan as PM company and your business plan and forecast?

Maybe you are trying to present your portfolio as a well-run business/investing. That can be done with good bookkeeping and portfolio presentation. 

Not saying LLC is not worth it. After considering other factors ( loan due on clause, cost of LL) maybe have the properties in the LLC and collect the rent via LLC to run like an RE investment as opposed to PM by just collecting rent.

I am thinking I can show income via management of the rentals and build business credit that will allow me to invest in new properties.

I have 3 properties I rent. All were places I lived in the past. I want to start a expanding my holdings now.