As stated in the title, my fiancé and are navigating through the weeds in terms of understanding whether establishing a business LLC is at large beneficial to our investment projects or not? I am considering aspects such as taxes, hard money lending draws for GC's and additional associated withdrawal or concerns. Any and all inputs are welcome, thank you.
Absolutely. It’s not expensive, does not need to be complicated, and will give you protection and segregation. If you’re treating your investments like a business, run them like a business with their own accounts, books, and operations! Some will say that your finance costs are greater, which is true, but if its a bad deal with commercial financing, it probably won’t be a good deal with traditional financing. We bought a property with a commercial 30 yr loan at 4.0% (I think we paid 3 pts) so it’s comparable still. Build those relationships with local lenders and you may uncover similar options. My 2 cents