Quote from @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.
I'll take a stab at this
your LLC is 1 new, Think of this as a person with no income no credit history and no assets.
Do you think any bank will loan on these terms granted you and your credit will ultimately be the co-signer. Not to be a killjoy just trying to bit a little of perspective. small business loan I think is a minimum 3 years in business to get any funding for LLC. From personal experience it is doable, but you need credit history for that new business.
as for the getting the property in your business LLC I think that may trigger a due on sale clause because it is in your name. Maby you keep the note and the LLC gets the deed but again I think this may trigger a due on sale clause, talk your bank. I have heard lot people put property's into an LLC for protection from lawsuit but they have multiple properties 5+.
You can only write off expenses In the LLC up to the time of inception. Meaning you opened LLC in July for example you can only clame taxes from July through the end of the year.
Personal loan is up to you if you can afford it I think the rates on those ar around 10% or higher paying back your loan with their money you borrowed from them doesn't make a whole lot of sense. perhaps a heloc might be an option. just because you have credit in a heloc you dont have to pay for that unless you use it
