Handling Down Payment and Closing with LLC

[Daniel Rutherford]

I am closing soon on a property that I am financing. My plan is to do a quitclaim deed after closing to get it in my LLC's name. Obviously one thing I want to be sure of from a legal standpoint is making sure I am treating LLC funds as separate from my personal funds to protect my liability down the road. That leads to my questions.

1. I will be providing funds at the closing. Should I funnel that into my LLC bank account first even though I will not be closing as the entity? I don't want any appearance that I'm using non-business funds to make purchases.

2. If the answer to #1 is yes, would it be recommended that I get utilities in the LLC's name? I would probably be asked to provide a personal guaranty, but that's fine with me.

Any guidance on this is appreciated.  Perhaps I'm overthinking things, but I want to make sure I'm being careful.

[Costin I.]

But what are you trying to protect @Daniel Rutherford? Do you have many other assets, large equity in this acquisition (the mortgage itself is a form of protection, a deterrent as there is little to collect in case of trouble) or cash flow? If you don't, you'll be better served by taking care of the other forms of risk mitigation (which you need to implement anyway) and not complicating yourself at this stage with an LLC.

And be careful when transferring property with a QCD, you'll break the title chain and risk loosing title insurance.