Thread: Using LLC to buy a residential house

Originally Posted by theartpirate

I was wondering if anyone knew the Pros and cons of forming a LLC company and buying a residential house with it. I plan on living in the house but thought it was a good idea to protect the house in case i get sued or have huge medical bills.

I know this is a common practice with rental multi family houses, but can this also work for single family houses? As far as i know the only con is that it is hard to get a loan for the LLC. I live in CT, does anyone have any additional input?

Thanks

It is not that difficult to get a loan for the LLC nowadays as long as you are willing to personally gaurantee the loan. I can see your logic in wanting to hold ownership to the home in a LLC but think you should look into wheather it removes the tax advantages of owning the home. You may be able to protect your asset just as well with insurance products and still keep your write off. I beleive this is a question best for the legal fourm.

Yeah, this question seems quite "legally". I have never heard of anyone doing it for their primary residence but have seen it done for rentals all the time. This is definitely more of a question for an attorney.

Opps.

Thought i was in the right place for the question. Thanks for your help indirecting me to the correct forum. Kepp up the great work guys this site is very helpful!


Jak

Your welcome, I hope you find the answers that you seek.

Best to refer this type of question to an attorney. I know it is done but you will have to personally guarantee the loan. Anything more than that would have to be directed to your legal professional. It's great that some questions can be answered on here for free, but this is one that is worth paying for and getting sound advice.