First time buying a mixed used - retail front/ owner occup apart.

[Anna Delos Santos]

Hello!

We plan on buying a mixed used - retail front/ apartment mixed. The residential part is NOT 50% of the building therefore, the loan has to be commercial which is fine. We plan on renting the downstairs and living upstairs. I just have a few questions for everyone and I hope you can help.

1. Should we create an LLC first before purchasing? we don't have a stable cashflow since we're just starting Or should we purchase it then create an LLC so the tenant downstairs can pay the rent to our LLC.

a. I would assume that we can purchase the property then transfer it to our LLC once we form it through quick claim deed. Is this a better idea? I am a bit lost honestly.

1. I am assuming we would get taxed on the rent that comes in from downstairs? If an LLC is not formed yet, would they just write the check to us? how would that get taxed?

2. If we are living upstairs, do we as owners also pay to our LLC? or doesn't not matter because we own the place. What is the best way to do this when it comes to making sure we save money? We want to know and learn the best way to handle this.

We are trying as much money and also protect ourselves. 

Thank you and I appreciate your help in advance.