Hello All,
We are in the process our buying our first home/acreage. My wife and I are both physicians in a rural midwest community. I like the idea of owning our house as an LLC so that where we live stays somewhat anonymous around town and cannot be easily searched by everyone, especially by any potentially disgruntled patients.
Here is my understanding so far:
1) If just one of us owns the LLC we won't have any negative capital gains tax problems since would be viewed by the IRS as a 'single-member disregarded entity' (treated as if owned by the same individual).
2) My accountant in town said that the LLC would not have to produce income. We live in Iowa.
3) You can have issues getting a mortgage since some mortgages have a 'due-on-sale clause', which requires the mortgage lender to consent to any transfer of the property to a limited liability company or otherwise. I will be contacting my finance institution this week about this.
4) We would have to put our homeowners insurance under the LLC. I will be meeting with our insurance agent this week.
5) In Iowa, it looks like it the Iowa state fee for setting up an LLC is $50 and there is a biennial reporting fee of $45 online (paid every 2 years). Also, we would have to file a biennial report every 2 years even if even if there is no business activity or make $0.
Is there anything I am missing that would be important to consider? Any liability issues? Do you think this be a good idea?
Thanks for you help and opinions!
We are in the process our buying our first home/acreage. My wife and I are both physicians in a rural midwest community. I like the idea of owning our house as an LLC so that where we live stays somewhat anonymous around town and cannot be easily searched by everyone, especially by any potentially disgruntled patients.
Here is my understanding so far:
1) If just one of us owns the LLC we won't have any negative capital gains tax problems since would be viewed by the IRS as a 'single-member disregarded entity' (treated as if owned by the same individual).
2) My accountant in town said that the LLC would not have to produce income. We live in Iowa.
3) You can have issues getting a mortgage since some mortgages have a 'due-on-sale clause', which requires the mortgage lender to consent to any transfer of the property to a limited liability company or otherwise. I will be contacting my finance institution this week about this.
4) We would have to put our homeowners insurance under the LLC. I will be meeting with our insurance agent this week.
5) In Iowa, it looks like it the Iowa state fee for setting up an LLC is $50 and there is a biennial reporting fee of $45 online (paid every 2 years). Also, we would have to file a biennial report every 2 years even if even if there is no business activity or make $0.
Is there anything I am missing that would be important to consider? Any liability issues? Do you think this be a good idea?
Thanks for you help and opinions!
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