All Forum Posts by: Jielu Zhao

I would speak to an attorney, double check on state regulations and review your lease requirements.

@Jielu Zhao

Deed the properties into you or your wife's name, refinance the property then warranty deed it back into LLC name.

@Jielu Zhao I do not see why it would be illegal. Would your wife or business partners wife be able to qualify solely for the loan? 

If you don't mind me asking what are you trying to accomplish doing this, other than moving business debt to personal debt?

1. Contact an attorney familiar with LLC and Tax law in your jurisdiction.

2. I honestly doubt this would work, even if it proves to be legal. Lenders aren't stupid. They'll see your wife's name on the deed and immediately ask, "ok, so what's different between you, her, and your LLC?" Then no matter how you answer, in this day and age of Covid "Abundance of Caution" they'll just deny the loan. They're not hurting for borrowers right now.

3. Everything I've heard about LLC's says to get the loans in your name, then if you want to, transfer them to the LLC. But I've also heard opinions that you most likely won't really need an LLC. I don't remember the details, but we have a BPer who handles "Land Trusts" and recommends that strategy over LLC.

4. Did I say to contact an attorney? Bears repeating.

Jielu,

I recommend finding an accountant that specializes in real estate taxation over one that is local. You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a tax strategist who is willing to work with you throughout the year, not just when preparing your tax return. You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.

Good luck and let me know if you have any questions.

You should talk to @Phillip Weickert.