In our fourth and final installment of our continuing series on entity selection for owning real estate, we will address the business and tax law considerations concerning limited liability companies.
What is a Limited Liability Company?
Limited liability companies (LLCs) are the most popular choice of organizational form because of the inherent flexibility in most state statutes that enhances the ability of the entity to adopt features that best serve its objectives.
In the first part of our series concerning entity selection for owning real estate, we addressed
sole proprietorships and tenants in common. Here we examine the business and tax law considerations concerning partnerships.
In this series of blogs, I provide a brief overview of the most common forms and business entities available under state law for purposes of owning real estate. These summaries do not seek to account for every similarity or difference between forms and business entities, but rather focus on what will probably be the most salient factors when comparing one entity against another.
A real estate transaction can be a perplexing process no matter if it’s large or small. The precise procedures and professionals pushing paper appear puzzling regardless of whether the transaction qualifies for a tax-
deferred exchange under Section 1031. While there are many legal and financial aspects that revolve around the purchase and sale of real estate, the closing of a real estate transaction should not be an adversarial process. No useful reason exists to think of or treat a closing like litigation although it does happen. Everyone involved needs to work together in a cooperative way to consummate the deal. Real estate law is a function of locality and custom in many respects; however, we will generally review some commonalities in the closing of a real estate transaction.