Business Owner: Purchasing Building and Leasing to My Company

[Nathan Gruetzmacher]

Hello BiggerPockets Members! 

I am seeking some advice about an opportunity that just came to my attention, and I do not want to pass up on it granted I am thinking straight. In summary, I own a company, and thought about purchasing a home with another LLC or other business structure, and renting to my company.

My main concerns: 

- My current rent my existing company is paying is $1,500.00/month, and I can finance this new location with XYZ(New LLC) for roughly $800.00 after taxes and insurance is accounted for on a 15 year loan. Are there any limits to what I can charge my existing company in rent? Can my current company pay XYZ $1,500 a month in rent, or are there any legal thresholds on what is appropriate for rent in this situation?

- If I were able to charge any mount of rent, I would charge that, and eat down the loan on the property as quickly as possible while still retaining some of the cashflow for capital expenditures and so on, and hopefully be able to refinance much sooner, and roll into other investment properties.

Any advice on this matter would be greatly appreciated!

Thank you, 

Nathan