Building on Your Own Property

[Anderson Dowling]

Do any general contractors have experience on building on a property that you own or have equity in? I am going to sign a contract between the LLC that owns the lot and my contracting company, but I am a bit concerned about taxes. Do I pay my own construction company as if I were a customer, or do I just pay for all construction costs (minus labor) directly from the LLC the property is deeded to? I'm concerned it will be difficult to prove to the IRS that the contracting company did not profit from the job and everything was done at cost.