A wealthy couple bought a $1 mil property to use as Airbnb or wedding venue. They got the mtg in their name and formed the LLC later. Is it important to have the mortgage and insurance in LLC name in order to preserve the liability protection and to take deductions? The LLC cannot get a loan from a lender in its own name. Will this pierce the liability shield, and should the couple in turn file some paperwork that they themselves lend the money to LLC? As it's set up, the mortgage interest cannot be deducted on Form 1065, nor can it be deducted by the couple since investment interest is hardly deductible.