Burbank, CA asked in Business Formation, Business Law and Real Estate Law for California

Q: What is best for me llc or corporation i want to start a business buying properties in other states and rent them out

1 Lawyer Answer
Joshua Kroot
Joshua Kroot
PREMIUM
Answered
  • Los Angeles, CA
  • Licensed in California

A: There are a few factors that will play into your decision, including how many properties you are planning on holding, whether there will be other owners, partners or investors in the business, and what your tax situation is. Often, real estate holding companies will be structured as LLCs. Many times, a new LLC will be formed for each property held, which among other things may help to limit liability so that liability affecting one property may be less likely to affect another. That said, there are instances in which you may want to hold properties through a partnership or even a corporation, or may want to create an umbrella company that holds subsidiary entities that hold the property.

Your best bet is to discuss your situation in more detail with an attorney or your CPA.

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