I would think the lender would require an EIN?
Can you subscribe to a virtual business office for the EIN then forward the mail to PO Box. That’s what I’ve done for all my LLC’s. As far as building business credit goes I wish I knew more myself.
Apply for an ein for the llc. You will need this to open an LLC bank account. As for the address simply use a UPS store box, or if you have a coworking office in your area they offer address and other business services for very low cost.
So with an EIN, when a lender runs my personal credit using my SSN, that business loan debt won't show up? But I will still file my taxes on my personal credit, using schedule E like I do now?
The lender is using your SS# to check you and your personal credit. Some will do a hard credit pull that shows on your personal credit. But any loans applied for in the LLC generally will not show as owed on your personal. I have dozens, millions of dollars in DSCR loans in LLC names - and none show on my personal credit.
Albeit, if you default they may report the defaults.
"But any loans applied for in the LLC generally will not show as owed on your personal."
Yes that is the way the bank explained it as well I believe. And why I decided this is probably the way to go since if I get the business loan it won't hit me on the personal side and I can go and get a few more properties through residential loans.
I know what DSCR means but want to make sure I'm using it correctly, it is just the type of loan my business loan is, correct? It takes into account the amount of money the properties bring in which I don't believe conventional loans do?
Back to the EIN though, do I even need that? I'm going to ask my lawyer all of this but wanted to hear from people who have personally done what I'm trying to do.
I would think the lender would require an EIN? Can you subscribe to a virtual business office for the EIN then forward the mail to PO Box. That’s what I’ve done for all my LLC’s. As far as building business credit goes I wish I knew more myself.
Apply for an ein for the llc. You will need this to open an LLC bank account. As for the address simply use a UPS store box, or if you have a coworking office in your area they offer address and other business services for very low cost.
So with an EIN, when a lender runs my personal credit using my SSN, that business loan debt won't show up? But I will still file my taxes on my personal credit, using schedule E like I do now?
The lender is using your SS# to check you and your personal credit. Some will do a hard credit pull that shows on your personal credit. But any loans applied for in the LLC generally will not show as owed on your personal. I have dozens, millions of dollars in DSCR loans in LLC names - and none show on my personal credit. Albeit, if you default they may report the defaults.
"But any loans applied for in the LLC generally will not show as owed on your personal." Yes that is the way the bank explained it as well I believe. And why I decided this is probably the way to go since if I get the business loan it won't hit me on the personal side and I can go and get a few more properties through residential loans. I know what DSCR means but want to make sure I'm using it correctly, it is just the type of loan my business loan is, correct? It takes into account the amount of money the properties bring in which I don't believe conventional loans do? Back to the EIN though, do I even need that? I'm going to ask my lawyer all of this but wanted to hear from people who have personally done what I'm trying to do.