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Updated about 4 years ago,
Lending From C Corp To LLC?
Hi. Quick question for all the CPA and lawyers in here. 2 questions. Note: this is to buy rental properties with the LLC. Don't want to use C Corp to buy real estate.
I have a C corp in California. Looking to invest into real estate in the state of Missouri. I know I can lend money from my C corp to my LLC with 3% interest paid to the C corp.
1. My question is if it's OK for that LLC to be registered in MO not CA. Are there any legal issues with that? Also if there's any extra tax information, please provide that as well. I will be contacting my CPA and lawyer this week but I wanted to get input from these forums.
2. Does the MO LLC have to be under my name to lend money from the C corp? Can it be under a families name that doesn't have my name? Also the family member is not a part of my C Corp. If not, is it a good idea to add myself as a member in that MO LLC to get approved for the loan?
I appreciate everyone's time and help. Thank you!