Should You Buy Commercial Real Estate Personally or in an LLC?
Updated: 6 hours ago
Personal name or LLC?
When someone is purchasing commercial real estate, one question I get asked all the time is whether they should buy it personally or put it in an LLC. It's a great question, and the short answer is that there's no single answer for everybody. It depends on your situation.
When an LLC can make sense
If you're looking to add an extra layer of protection for your business, or you own multiple properties, there are a lot of reasons an LLC can make sense.
Factor these in before you decide
Insurance: how the property is owned can change your coverage and cost.
Financing: if you're getting a loan, ownership structure can affect your options.
Taxes: your structure can play a major role in how the property is taxed.
Talk to your team before you make an offer
Before you decide either way, look into it ahead of time. Get your CPA and your lender involved, and talk with the right professionals to see what makes the most sense for you. Doing this before you make an offer makes far more sense than sorting it out after the fact.
Have questions? Give me a buzz. We can set you up with the best professionals for your situation.
This article is general information, not legal or tax advice. Talk with your CPA and attorney about your specific situation.
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