2 specific lending questions (schedule c / llc structure)

[Travis M.]

I just got approved for a mortgage in Humboldt, California.

It was an absolute nightmare with self-employment income being verified by fannie mae/freddie mac rules, and not being able to use income from new LLC's I have as they don't have 2 years of history. I made it through, but it was brutal.

Current problem: ALL my business for the last 10 years is Schedule C sole-proprietor business on my personal name. I want to move it OFF my name onto a new LLC (as all commingled funds make it very difficult to create a personal budget), but I don't want to run into the same headache if I want to refinance/get 2nd mortgage ~1-2 years from now.

Question 1: After a lot of back and forth with my loan officer (who is being very vague because she thinks I want tax advice, even after repeatedly saying I only want advice specifically related to loan approval), she has stated that if I "move my schedule C to a LLC" then A) I must be the sole owner, and B) I must wait 12 months on that new business. My question (which I can't seem to get answered) is... do I need to do anything "special" beyond those 2 things when setting up the LLC to prove that "this new LLC is replacing my sole-proprietor business as the exact same business", or do I simply form the new LLC, stop accepting payments to personal bank, accept payments to new LLC, wait 12 months, and then if I submit my LLC formation they will just take my word for it that it's the same business?

Question 2: I want to use an anonymous Wyoming LLC with a registered agent, as they're very good for privacy and asset protection. Do you think this will cause a problem with fannie mae/freddie mac approval? I talked to the LLC attorney and he said they provide the following 3 documents to prove I'm the 100% sole owner:

• 1. resignation of organizer (legal letterhead)
• 2. operating agreement
• 3. certificate of incumbency (notarized)