New to Real Estate · CT · Member since 2023 · 2 posts · 1 vote
I am looking at buying my first house hack very soon. In thinking through the process I was hoping to get some advice on the best way to accept payment from tenants. Does it make sense to establish an LLC and take all payments through that company? Is there any benifit to that? If I am buying the home as owner occupant and it will be a personal mortgage I don't see any protection from the LLC but if I'm not seeing something please let me know. Thank you!
If this is your first house, I would suggest you not to bother with the LLC. You can simply get umbrella insurance if you want some kind of additional liability protection. If it's a single member LLC, there are pretty much no tax advantages as all of the LLC's revenue and loss will be recognized as your own in your own tax return. The simplest and easiest way is for them to setup a recurring payment to you. But if you want to track the tenant balance and appear little more professional, simply use RentRedi.
If this is your first house, I would suggest you not to bother with the LLC. You can simply get umbrella insurance if you want some kind of additional liability protection. If it's a single member LLC, there are pretty much no tax advantages as all of the LLC's revenue and loss will be recognized as your own in your own tax return. The simplest and easiest way is for them to setup a recurring payment to you. But if you want to track the tenant balance and appear little more professional, simply use RentRedi.