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Updated almost 7 years ago on . Most recent reply

User Stats

23
Posts
5
Votes
Megan Elmendorf
  • Accountant
  • Saint Charles, MO
5
Votes |
23
Posts

Looking for advice - legal organization & loans

Megan Elmendorf
  • Accountant
  • Saint Charles, MO
Posted

I will try to keep it short, any input would be greatly appreciated. 

I own 1 rental property with a partner. We started an LLC and filed an SS-4 to obtain an EIN in order to open a business bank account so we could have a neutral business bank account to accept rent and pay the mortgage and other expenses. When initially getting the loan on the house, we simply both were co-signers on the loan - i.e. obtained a personal conventional loan. We have not put the deed to the house in the LLC. At the end of the last tax year, it was brought to our attention that since the loan is under our own personal social security numbers and the business income/expenses and tax return is filed under the EIN, we have a disconnect so to speak that we need to correct. Does anyone have any advice on how to proceed? We have considered dissolving the LLC, but I am unsure of the tax implications. Does anyone have any insight as to the implications? Do we need to refinance to a commercial loan? Is refinancing from a conventional loan to commercial loan possible?

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