Starting buying our first investment property. We have sent paperwork to form an LLC. Property is going to be funded through a personal loan (have gone over safer strategies with a lawyer but it's what we can do to start so). Wondering if we should do all of the business on the property through the LLC if this makes taxes easier or makes keeping things separate easier? Looking for pros and cons. We are planning to have an accountant help us. Thanks!
You should speak with an attorney as well. Especially if the LLC is owned by more than one member and the members are arms-length. If this is the case you really need an operating agreement that all members agree to and execute.
The primary purpose of an LLC is to limit liability. If you're not going to contribute the property into the LLC and run all business through the LLC, what purpose does the LLC serve?
@Eamonn McElroy . Hopefully we'll be able to contribute the property to the LLC in the near future and thus wondering should everything be done through it so as to limit mixing of personal and business funds. Understandably since the LLC isn't purchasing the property there is liability in that the roads lead back to us but....
@Tom Willson I think the point of an LLC is to purchase the property into it for protection. Without having the property in the LLC, I'm not sure I see the point. Personally, I don't have an LLC for my rentals yet (I have an umbrella policy for now), but I do have a separate bank account so my personal funds and rental property funds are never commingled.