Getting a personal loan for LLC use (Tax and Legal Implications)

[Dallin Watson]

I had my tax guy open an LLC for me this spring, but don't know much about maintaining it. I currently own a duplex and I'm working on getting it out of my name and into the LLC's name. I am also in the middle of renovating one of the units. Between renovations and major property maintenance (removed 4 trees that were too close to the property) I am at the end of my savings. I have just enough to complete everything, but don't want to strapped for cash in case something unexpected happens until I can finish renovating and get the property cash flowing again.

I have been thinking about getting a personal loan to have as money on hand in case something unexpected does happen. Where the property does not currently cash flow, would getting and paying for a personal loan in my name, lead to potential cause to pierce the vail in a potential legal dispute if all the expenses associated with the loan is ran through the LLC? Could this potentially make my personal finances and the LLC finances be seen as one in the same at a legal standpoint? I know there are things you need to do to keep the LLC in good standing, but not sure what they are. Would this be something that could hurt the legal protection between personal and business?

Would there be tax implications with this? If the loan is in my name, can I still write off the expenses with the LLC? If I could do a loan with the LLC would I be able to write of any part of the monthly payments? Would I be able to write the expenses off if the loan and the expenses were in my name since the property is still in my name?

I have also thought about seeing if I could get a loan with the LLC, but I know that usually takes a bit longer to get approved than personal loans do. I am hopefully not going to need the loan for more than a few months. Only until I can get the property restabilized. Could a short-term private loan with the LLC be a better route to look? I can't imagine the short-term private rates, and the personal loan rates are much different right now.

Any guidance would be greatly appreciated.