A Limited Liability Company or shortly known as LLC is a business structure that provides multiple facilities to the corporations. The main feature of an LLC is that it legally helps the owner of the company to have limited liability. Some of the Pros and Cons of buying a house under an LLC are given below,
Privacy– Purchasing a house under an LLC ensures that the name of the owner would not appear anywhere. The house would use the title of the LLC company which is effective if the owner wants o to conceal their identity.
Limited Liability– The owner will not be personally liable for the company’s debt or other liabilities.
Tax benefits– LLC structure provides a huge tax break if any property is bought under the name of an LLC corporation.
Easier to invest with a partner– The process of purchasing the house with a partner or a friend is very comfortable with the help of an LLC. The LLC would not want to know who the other partner is.
Costs– Purchasing a real estate property under an LLC name costs the owner a bit more than normal as they have to pay for the legal activities.
Difficulties getting a mortgage– Banks usually don’t like to provide mortgages to those properties which are related to LLC companies due to limited liability issues.
You won’t be eligible for most types of residential loans– It’s very difficult to tap into another kind of residential loan if the house is initiated with an LLC company. FHA loans and other conventional loans are very hard to pursue.