Phoenix, AZ asked in Entertainment / Sports, Real Estate Law and Tax Law for Arizona

Q: Can "Entertainment Inc." Purchase property? Multiple Properties?

If I own an entertainment corporation can I purchase property in my corporations name. I want to purchase 2 commercial properties. Both will be a storage/warehouse for equipment but in separate states because I provide entertainment services in different states and hate shipping equipment back and forth.

2 Lawyer Answers
Peter H. Westby
Peter H. Westby
Answered
  • Scottsdale, AZ
  • Licensed in Arizona

A: Provided your corporation's governing documents allow it, your corporation can purchase real estate. Check with a lawyer in each state where you plan to purchase property. You may need to register your corporation as a foreign corporation doing business in each state. Your local lawyer will know.

Eric Steven Day
Eric Steven Day
Answered
  • Tax Law Lawyer
  • Henderson, NV

A: Entertainment inc can by property, however it is not a great entity to hold real property. C corporations are horrible vehicles for holding real estate because you don’t get the benefits of capital assets in a C Corporation. I would put the properties in LLCs owned 100% by yourself or a holding LLC and then rent the properties out to your CCorporation. This will allow you to personally take advantage of capital asset treatment but also give you a rental deduction to your active income in the CCorporation.

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