Paying rent to your own LLC / Question about 'self-dealing'

[Louis Basel]

Hello folks,

My wife and I bought a warehouse. We created a LLC whose sole purpose is to own/operate this warehouse. We occupy a portion of the warehouse with our sole proprietor businesses and rent out the remainder.

Is there any reason we must pay the LLC rent? Is there any reason we might want to pay the LLC rent?

A friend who is also occupying part of a different industrial property that he owns in a LLC mentioned 'self dealing' as the reason he was told he must pay his LLC rent for space he's using. Does this apply to us?

Thanks for your help!

-Louis