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Updated 5 months ago,
Will my single member LLC veil be pierced if I am the borrower
I currently have a few single houses for rent which are directly under my name, and also the mortgages are under my name.
I am considering to move the houses to an LLC 100% owned by me. But I don't think the borrower for the loan would change, so that means each month, my tenant would pay rent to ABC LLC account under my property manager, and my property manager would distribute the funds to my sole prop business account, and my sole prop business account would pay the mortgage.
Will the tenant have a case to argue that I am commingled with my LLC?
Note: A more complicated way would be to also setup a business account under the LLC, and have my property manager distribute the funds to that business account. But the lender does not allow loan payment from the LLC business account because the name of that account does not match the borrower (me). So I would still have to move funds from that business account to my personal account before I pay the mortgage each month. But even if they do, the tenant could still argue that I am the one who borrowed money to finance the real estate so i am commingled. What do you think?