Hello I am quite new to chatting but am giving it a try-
I established an S corporation with my current business;which has nothing to do with real estate. I now want to buy a house. I am struggling with the question of should I put it under my corporation - and if so, is there any additional paperwork in order to buy under an already established corporation (that has nothing to do with housing or real estate)?
Any suggestions
-thank in advance
The LLC provides the protection of a corporation, but is more like a partnership arrangement in many ways. LLC "members” (vs. ‘share-holders’ or ‘partners’) participate in the day-to-day management of the company without incurring personal liability. All taxing agencies (state and federal) tend to “look through” the LLC to its member’s as the responsible parties in terms of accounting for, and payment of, income tax. Profits and losses relative to passive activities within the company flow to the members who remain free of individual self-employment tax. Good luck.
Da Wiz
buy the house personally, and put it in a trust. For more protection, you can consider forming an LLC to be beneficiary of the trust.
don’t buy it in your corp (the “all your eggs in one basket” principle). Also search previous posts for the significant difference between corporate stock ownership and ownership of an LLC member’s interest.
Thanx for your response as you guys are quite informative. No need to put eggs all in one basket…
Nic