@David M., David, so glad to hear from you again. I always appreciate your thorough responses to my constant questions!
I am definitely going to need to do some research on the logic test and alter-ego requirements for protecting our corporate veil. As I asked above, I'm curious if securing private lending (where the lender holds first lien) in the acquisitions and rehab phase would hinder our ability to quitclaim into a separate LLC through which we would secure commercial financing. Or, because the lien is tied to the property and not the LLC, does it not matter?
This is a very interesting idea, and I assume has positive tax benefits since, like you said there are no "profits," so you have no tax liability, right?:
"One idea that comes to mind is to form a Remodeling LLC. Let your "Property LLC" take Title, but have the Property LLC, the owner, contract with the Remodeling LLC to do the rehab."
Or would you be potentially be required to pay the "Remodeling LLC" for their services (probably based on state law)?
Re: taxed as a disregarded entity
Wisco is a martial property state, so my husband and I are both members of the LLC.
I'll direct message you about all this, because .... it's crazy.
Thank you so much!