Posted by Natalie-VA on August 15, 2005 at 11:56:47:
Hi Robin,
We were advised by our accountant to do our rehabs in an S-corp and our rentals in an LLC.
Also, we started out as a sole proprietorship for the first two years until we established a track record. Then we took our business plan to a commercial lender who was happy to loan money to the S-corp or LLC as long as we guaranteed it personally.
I hope this helps a little.
–Natalie
Should I set up an LLC before getting financing? - Posted by Robin (OR)
Posted by Robin (OR) on August 14, 2005 at 10:51:05:
I am just getting started. Trying to do everything in the right order - set up financing, develop an exit strategy, then find deals. Am looking to either flip or rehab depending on the property that I find and amount of fix-up needed. I would like to set up an LLC for this business, but wonder if it would be harder to get financing with a new business than just to finance in my own name? Would it be better to get the financing and the deal first, then move everything (property and/or profits) into an LLC? I want to avoid a nightmare at tax prep time. (I also posted this message in the financing discussion group) Thanks!