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Updated 11 months ago,
Will using income to pay downpayment from HELOC pierce the LLC corporate veil?
I am closing on a multi-family soon and the mortgage will be in the LLC's name. All income and expenses will be handled by the LLC. The problem is that I am using a HELOC to assist with the downpayment for the loan. If I use the LLC's income to pay the HELOC payment directly, will that pierce the corporate veil? I want to be very careful to maintain the limited liability an LLC affords. Should I transfer the downpayment to the LLC account as an owner contribution and then log the income as repayments back to me? Then I can use the repayments to pay off the HELOC? I just want to make sure I maintain the liability protections but I still need to repay my HELOC without coming out of pocket.