And a corporation may retain the income, but it still pays federal taxes on it, and then when it is distributed to the shareholders, they pay tax on it AGAIN! 

As for how such a deal may look, you could have a new parent holding company with different individuals/LLCs as shareholders. 

There will be a bank loan of $1,452,000.The money will be raised via a Shareholder Loan and we are offering 40% ownership for $500,000 for a $772,000 share value.

When Courts Will Pierce the Corporate VeilCourts might pierce the corporate veil and impose personal liability on officers, directors, shareholders, or members when all of the following are true.

Anyone know offhand how a commercial loan on a property held by an LLC affects the individual shareholder’s personal DTI for loans to the individual?

They have to answer to compliance, bank examiners, board members and possible shareholder.

The biggest challenge is likely maintaining the separate identities of the company and its owners/shareholders.

Then you are stuck with having to evict which is a time consuming and costly process, not to mention emotionally draining as you are going to be litigating against people you may have come to like and trust and whose personal circumstances are out of their control.Biggest issue here is that the bank will be less forgiving than you - they have shareholders and federal regulators breathing down their necks, so while you dilly dally with litigation evicting a family whose breadwinner lost his/her job, the bank is demanding you keep their payment current or they'll take the building from you.2.

The biggest investors get the best treatment, so they are Class A-1 shareholders.

It benefits REIT shareholders.