Primary Residence as Single Member LLC for Privacy

[running403]

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!

[jfoxcpacfp]

I suppose in a small town, it would be fairly easy for a disgruntled patient to follow you home, just a thought. Otherwise, the least liability prone should own the property. In your case, Idk who that w/b. Will you qualify for the same interest rate in a SMLLC as you will as joint ownership individuals? Is LLC ownership transparent in IA? Finally, in the event of marital problems, would this cause an issue?

I’d run this by an atty licensed in IA before pulling the trigger.

[Tim]

“ 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.”
In rural Midwest communities, hardly anyone searches tax assessor records to find home address. Many times simply asking directions leads one to your doorstep. That’s one of the benefits of rural Midwest life, everyone knows just about everyone. Anonymity and the ability to get lost in the masses disappears.

[Bmac]

Yeah, it seems like a lot of trouble for something that might not be very effective for your situation.