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Business structure for real estateQuestion What is the best business legal structure to use if I purchase the building in which my small business is currently a tenant?
Answer There are two compelling reasons to use a limited liability company (LLC) for real estate:
- You and your estate will be protected from liability arising from the property - LLCs are taxed as partnerships for federal income tax purposes, allowing you to increase your basis in your LLC ownership interest by loans to the LLC (e.g. mortgages) Be sure to discuss your personal situation with a knowledgeable tax and legal advisor before you proceed. 
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Accounting, Finance, Taxes, Business Buying And Selling, Business Structure, Legal, Real Estate
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