Buying a building for my business -- independent entity?

[Brandon Palmer]

Hi folks.  My wife and I are starting up a new business with an target open date of Jan 2023.  We are considering renting a space to use but also have an option to purchase a building which looks like it will fit our needs as well.

I'm looking at 2 options and could use some opinions:

1) The business buys the building and just pays what ever debt service is required

2) we setup a new LLC which buys the building. The business LLC then pays rent to the property LLC.

We would be the sole owners of both LLCs either way so I suspect the tax / deductions wouldn't really matter. It may be worth us having the building ownership in a separate LLC for lawsuit protection reasons.

A further consideration is that we could eventually be in a position to sell the business and having the building in a separate LLC would allow us to keep that as an independent revenue line.

Thoughts folks?

Thanks all!