I am in an interesting situation, let me explain. I started and LLC a few months ago to hold real estate. I have recently bought my first property, but I had to purchase it in my name instead of the LLC's. This was due to being a first time homebuyer, and only being able to afford 5% down. It will be my primary residence for the next year or so. It is a two bedroom, 2.5 bathroom house, so I am hoping to rent out the second bedroom to get a little house hacking going. My question is, is it possible to channel this rental income through the LLC, even though the property is being held by me personally? Also, would there even be a benefit to doing this, or should I just wait until I am able to transfer the property over to the LLC, and in the meantime just take the rental income personally? I would rather not have the LLC just being stagnant and not providing me any benefit. The property is in Florida by the way.
I know that might be confusing, but I could use some help if possible. Thank you.
@David Chlarson why did you form an LLC in the first place? If it was not for liability protection I don’t see why you still have it. Instead of trying to make the LLC useful by making this complicated, get rid of it and just receive the rental income in your personal name.
@Sung Park I initially formed it for liability protection, but things did not go as planned when I had to purchase the property in my name due to mortgage restrictions. So you would recommend dissolving it? I am planning on buying more property in the future.
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