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6 Replies Last post: Mar 31, 2008 7:55 AM by pimports

I just formed an LLC. Renting couple condos for now, but...

Sep 25, 2009 3:48 PM

Click to view amadeus's profile Start-up amadeus 1 posts since
Sep 25, 2009
Hi everyone,

my name is Nick and I just formed my own LLC. I have a couple of condos which I am rening out to my tenants.
The properties are in my name, which means I have the mortgage on them, but the tenancy income pays the morgage and generates a profit.Now since I already formed the LLC can soemone advise me how should I do it from here?
1. Should I have tenants pay the monthly rent to the LLC (I already opend a small business acct with BoA)...?
2. Should I pay the monthly mortgage rates from the LLC small buss acct?
3 How am I goign to file taxes at the end of the year , so I can bnefit form the whole LLC thing?
4. I am plaing to buy one more condo soon.. should buy it into my name and just keep the condo tenancy as income to the LLC?

I am patient and taking step by step hopefully I will be able to buy more investment property and move slovly forward.
Any advice would be greatly appreciated.
Nick
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,932 posts since
Aug 6, 2007
1. Re: I just formed an LLC. Renting couple condos for now, but... Sep 25, 2009 6:41 PM
in response to: amadeus
Renting Condos, welcome Nick

Anybody (like yourself) having real estate and investment property should have both an accountant and a lawyer.

You should also develop a business plan that will take you step by step to success
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Click to view knowhosting's profile Professional knowhosting 7 posts since
Sep 24, 2009
2. Re: I just formed an LLC. Renting couple condos for now, but... Sep 25, 2009 6:43 PM
in response to: amadeus
Hi Nick:

Generally, if they are business properties, they should be in the businesses name. With properties, you are definitely opening yourself up to liability (e.g., slip and falls, damages in the condos) and if the properties are in your name, the LLC will not protect you from personal liability. You really should consult an attorney to figure out the best way to transfer the properties.

In answer to your questions:

1. Should I have tenants pay the monthly rent to the LLC (I already opend a small business acct with BoA)...?
Yes

2. Should I pay the monthly mortgage rates from the LLC small buss acct?
Yes

3 _How am I goign to file taxes at the end of the year , so I can bnefit form the whole LLC thing_?
The LLC allows you to use the Check the Box rule - so you check the box on the form to say that you are using pass through taxation. So, you can take all the losses/gains on your personal taxes.

4. _I am plaing to buy one more condo soon.. should buy it into my name and just keep the condo tenancy as income to the LLC_?
As I said above, you should have the company purchase the condo. You can loan the money to the company, the company can make the purchase, and the company can pay you back the loan.

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