Best to lend in your own name or via an LLC?

Question

Looking at lending via a title company.  The borrower will be in an LLC, however, I'm wondering if myself, as the lender, should lend in my own name or an LLC?

Marco Bario · Answer

@Hen Ley - Will the party you're lending to issue a personal guarantee? I often pass on purchasing notes where the payor is an LLC unless there is a personal guarantee.

Hen Ley · Answer

@Jamie Bateman, Thanks for the suggestion regarding the umbrella insurance policy-

Chris Seveney · Answer

@Hen Ley

I always recommend lending in your LLC. As a lender you never know if a borrower will counter sue - if they do better to be an LLC

Jamie Bateman · Answer

I second what @Chris Seveney said. The potential protection from an LLC far outweighs the downside of using one (fees, slightly nuanced tax returns).

You might also look into an umbrella insurance policy in case the LLC shell is pierced in a lawsuit.

Best to lend in your own name or via an LLC?

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