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Updated over 9 years ago on . Most recent reply
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As a realtor can I pay my personal mortgage from my llc?
As a newer realtor I'm thinking about starting an llc or s-corp so I don't get burned as badly on self employment taxes. I am also getting ready to move and rent out my current house and purchase a new one. I'm trying to figure out what makes most sense tax wise.
My question is if I have my commission checks paid to my llc, can I pay one or both of my mortgages directly from the llc? Essentially avoiding the self employment tax on this portion of income? Or does the house need to be owned by the llc? Am I not doing myself any favors by missing out on the tax exemption from the mortgage interest?
Thanks in advance!
Most Popular Reply
The one thing that no one has mentioned is the negative impacts of paying anything personal out of an LLC account. Not just your personal mortgage but any personal expenses should never be paid out of an LLC account. You will be eliminating any protection that the LLC provided for limited liability if you do that. A lawyer will easily be able to "pierce the corporate veil" and go after your personal assets if they can show that you treated your LLC bank account as a personal account. Never do this. You open yourself up to a ton of liability risk and would destroy any protection that an LLC could provide.