What’s the purpose of an LLC???

[Davidson Francois]

I’m still learning the financing part of the real estate business but can anyone help me understand the llc aspect of real estate? What’s the person of having a llc when from my understanding you won’t be able to apply for a loan under the business name nor will you be able to apply for a loan understand your name and transfer it to the llc. Anyone?

[Josh Bauerle]

@Martinis Jackson I'm a CPA and what you are saying is not accurate.

A sole proprietor is a pass through and clearly included in the new tax plan benefits.

Yes, an LLC can make a different tax election, which a rental company would never do. And either way, the LLC itself changes nothing with taxes. You can make a different tax election with or without an LLC. Which again, wouldn't happen in this case with rentals.

ALL LLC's are disregarded. The IRS does not regard LLC's as an entity. When you have an LLC with more than one member the IRS regards it as a partnership, not an LLC. And again, there are zero benefits under the new plan for LLC's as opposed to sole props. ALL entities, except C Corps, are pass through entities. This includes sole props, partnerships and S Corps. Regardless of which one you are, you will receive the 20 percent reduction of profits under the new plan.

I'm not trying to pick nits here, there's just a lot of bad info out there on LLC's when it comes to taxes. There is zero tax benefit to having one and the IRS doesn't recognize an LLC as a taxable entity, whether it is one member or one thousand members.

The one and only benefit to an LLC is the potential legal protection.