Collect rent under LLC even though property is under my name

[Rodrigo Hernandez]

Hi all,

I'm looking for some guidance here as I have a property that's under my name and a multi-partner LLC with friends. We have a business bank account for the LLC and I want to begin collecting rent and paying the mortgage with that bank account to keep my personal finances separately. Are there any tax consequences or restrictions in doing so? Thank you in advance for your help.

[Paul Novak]

I know it's not best practice but we do the same thing and we have 5 properties. We do all transactions and manage all money under the EIN number of our LLC. Business bank accounts, credit card accounts, etc.... Having said that our properties have traditional mortgages out in my wife and my name with our socials. Our bank told us they would struggle to give our business a mortgage when we purchased our first property. Now they have told us we just wouldn't be getting the best rates. We don't comingle funds between the two accounts. I haven't looked at transitioning the properties from us to our LLC for fear of the loan's getting called due. My bank assured me that they wouldn't do that. We have a great relationship with our local bank but we still haven't seen a point to make that change at this point.