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:
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.
Why would you need an entity for your real estate investment(s)?
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:
Is an entity right for me?
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?
What and who is involved in forming an entity for real estate?
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.
How often will I need to update my entity?
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.
At Moschetti Law Group, our practice serves the needs of Founders by providing real estate law and real estate syndication attorney services to Founders. Whether you are the Founder of a real estate empire or building a business and need assistance with purchase and sales, real estate transactions, or real estate litigation, we serve Los Angeles County, eastern Ventura County, and North Orange County from our office in Calabasas. We also have a primary focus on helping Real Estate Syndication Founders throughout the United States with forming their syndication, understanding crowdfunding, private placement memorandums, and operating agreements.