Creating a LLC, renting to myself

[John Nail]

If I buy a duplex and live in one side, can I create an LLC to control and protect both sides?

Basically I want both rent payments to go to the LLC to pay off the mortgage faster. I figure if I have to rent an apartment now anyway might as well pay the same amount and rent it to myself. Or does that cause a confusion with the bank when I claim I am the owner/occupant?

[J Scott]

Originally posted by Financexaminer:

If you lose a personal law suit, all of your assets held personally are at risk. Your Wal-Mart stock, your life long world series tickets, your bass boat and your ownership interest in your business, even if it's a LLC.

The asset protection goal of holding the property in the LLC is just as much (if not more) the other way around...

If the LLC -- the owner of the property -- gets sued (for example, someone slips and falls on on the sidewalk outside the house), the personal assets of the owner are not put at risk (assuming there was no personal negligence on the part of the owner, of course).

So, the goal isn't to protect the LLC should the owner get sued, but instead protect the owner should the LLC get sued...