Setting Up Legal Entity And Buying With Personal Credit
When buying property as an LLC or Corporation I have the following questions if anyone can assist. 1) Why would you choose one entity over the other? My plans are for rehabbing/resale...no plans for holding rentals. 2) What's the most cost effective way to get this set up? 3) If I buy a house under one of these entities but use funds (i.e. credit lines) which are in my personal name do I expose myself to legal risk? I realize if anything tanks the funds potentially lost are a personal financial liability for the amounts borrowed, but want to any unreasonable legal exposure.
I just went through this. You need to speak to an attorney for the legal end of it, and an accountant that can inform you of your local, state and federal laws regarding the tax consequences. If they charge a fee for their advice, it is money well spent. The benefit of professional advice ican be 100 or more times their fee. Good luck!
when you aply for tax i.d. # in 2 yrs your businees gets established and so therefore not only you have personal credit but your business will be acredited so you will be able to work with 2 crdit lines