Real Estate Entity Solutions
Attorney-Formed Real Estate LLCs and Corporations for Maximum Asset Protection
For any business, the entity itself, the LLC or Corporation that holds title to the property, is part of the foundation of the success of the overall project. The correct entity type and formed in the correct manner can have a significant impact on its ultimate success and the personal liability of its founder or members. While there are advantages and disadvantages to each type of entity, we have found that clients often misunderstood. Many times they think they must have an LLC or an S-Corp. Each means different things in terms of personal liability for businesses debts, tax liability, formation cost, and bookkeeping requirements.
The main contenders are:
- Limited Liability Companies
- Corporations (both S-Corporations and C-Corporations)
- Sole Proprietors
When you decide to work with our real estate attorneys here at Moschetti Law Group, we will help you address these concerns and lay out the foundations of a “protected future” as early as the initial orientation meeting. Whatever concerns you are dealing with, we will make sure to equip you with the right type of plan to help you climb the summit of life. Our Calabasas real estate lawyers are dedicated to helping you and your family achieve peace of mind and a sure foundation for generations to come.
Entities give the owner(s) benefits including limiting personal liability, flexibility in management, tax advantages, ease of transfer, and greater access to financing. Some tools that may be could include:
- Articles of Incorporation or Organization – To officially become an entity.
- Operating Agreement or By-Laws – To structure the rules for the entity.
- By-Sell Agreements – To prearrange transfer of business interest.
- Company Minutes – To document meetings and approvals.
- Annual State Reporting – To keep your entity up to date with the appropriate jurisdiction.
- Agent for Service of Process – To notify the public who to contact, this can be a resource to help shield your privacy.
Winston Churchill said, “He who fails to plan is planning to fail.” The reality is every sophisticated real estate investor, Real Estate Investment Trusts, and Private Equity shields their investments in entities.
Does it add to the complexity?
Is it worth it?
It’s best to involve an attorney that specializes in real estate, asset protection, and real estate businesses. You will be involved in the design and name of your entity, and we can give you as much control over your privacy as you desire.
Every jurisdiction has annual renewals on reports that must be filed. Depending on both entity type and jurisdiction there may be other issues as well. Our firm offers our 365 Entity Assurance Program that allows for required reporting, maintenance, changes, updates, questions, newsletters, and educational opportunities.