Funding Your C Corp. Or LLC
Hello All,
New to the forum! As well as new to investing. One question that I have revolves around investing in RE. My question is:
If you decide to become a REI, starting first with rental properties. Could you start and LLC, then fund this LLC with money from your personal savings, and could that money be tax-free? One of the advantages of having a Corp. is the Spend then tax format. Well when you are begining in REI, you need start up money, so can you write off the amount you give to your LLC, or do something else to that effect? Or do you have to spend the money from your own pocket and them write each expense off come tax time? Also would this funding method work for a C Corp that you plan to use to flip houses?
Sorry for such a long question, any answes would help alot.
Thanks in Advance,
Scott
The money you "give" your LLC will be a tax free contribution. There is no tax deduction on your personal tax return for a contribution to your LLC.