14 years
It might be good to check with an accountant first. It's probably different from state to state. California has some weird (very bad) LLC tax laws that don't exist elsewhere.
House buying issues
Start a Hostel
I am planning on buying a 3 bedroom house that I plan to covert into a hostel; my first question is, if I intend to own the hostel as an LLC, should I buy the house as an individual or as the LLC? Can I as an individual, lease the house to my LLC? How do I work this?
My goal is to be able to keep the house as my residence, should the hostel not be successful / financially sustainable / viable.
- Comments
14 years
The first question is if the LLC is a single person or not and if taxed like a corporation or passed through to LLC members. Either way, as long as you have an LLC operating agreement, it's a legit company. The LLC could then lease the space used for the hostel from you as the property owner with a very simple lease. Just make sure to keep all the finances separate. You can also write-off that percentage of utilities that the hostel leases from your federal income taxes.
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