Legal Question in Business Law in California

Re: llc vs. inc

No one entity is right for every situation, however it is likely you will want to go with one or more LLCs (1 per property) for real estate, because the debt of the LLC, unlike that of the S corp., is treated as part of your basis for tax purposes. If revenues are likely to be in the $200,000+ range, a limited partnership may also be considrered. There are of course more differences than I have touched on here. For futher information or to contact me please see my website at www.incorporatecalifornia.com

Thanks,

Re: llc vs. inc

This is friendly free advice and NOT to be relied upon for educational purposes only.

If you own shares of stock in a corporation that owns property, your personal creditors can seize your shares of stock as they are personal property. However, if you are a member in an LLC, that is NOT personal property and your personal creditors are unable to seize your membership.

I think an even more significant advantage to using an LLC in your case is that an LLC offers advantages regarding the stepped-up tax basis of the real estate at the time of sale. Check with a CPA on that, or pay a lawyer to give you solid advice you can rely on. Not this free crap that I spit out at 12:40 A.M. when I'm feeling helpful. :)

Best of luck,

Ben

Re: llc vs. inc

I wrote an article regarding the differences between types of entities such as LLC (limited liability company), corporation.

See article at http://www.legalwarriors.com/llc,_corp,_partner.htm