How are other landlords using their LLC’s

[Account Closed]

I just registered my LLC and i want the income/cash flow that's generated from my existing rental property to count as income to the LLC instead of myself. Should I possibly have the tenant deposit rent payments into the bank account of the LLC? If I do this will I run into any problems taking money out of the LLCs account to pay the the rental property's mortgage? I'm trying to create a trail which shows that the LLC is generating income in attempts to qualify for business credit to fund my future deals. Thanks

[David M.]

@Sharad Peterson

Co-mingling funds is the direct way to pierce the corporate veil of your LLC

If anything, you need to have the LLC legally in the process somehow. It's kinda silly.. perhaps have a contract between yourself and the LLC as some sort of "property Mgr." Then, the lease would be between the tenant and the LLC. The tenant would make the rent checks out to the LLC.

That's one way that comes to mind, but there are some other angles to cover I believe. Talk to a professional how to structure this. You need to treat the LLC like another entity.

Meanwhile, I don’t see how this is tax efficient...