Capitalizing LLC with a Personal Loan

[Arjun K.]

Question (1) :
I am setting up a new LLC. There is about $15K of rehab that needs to be done on the properties. Instead of capitalizing the LLC with $15K, is it better to capitalize the LLC with a $15K loan? This is a single member LLC. I figure capitalizing the LLC with debt, rather than equity, will shield me from income from the LLC. E.G., the first $15K of profits will have to go to repay debt. Will this principal repayment shield the LLC from income taxes?

Question (2) :
Depending on the answer for Question 1.. is it possible to set up an LLC for properties I have already rehabbed, and recharacterize the rehab work from equity to debt?