What's the best entity to hold real estate?

Choosing the best entity to hold real estate investments is typically dependent on the particular circumstances involved, such as the size and nature of the company's business, and number of owners or members and their respective rights and obligations. We find that many of our customers use an LLC to hold their real estate in order to protect their other assets and property from claims that might result from their real estate investment. If the LLC is formed and managed correctly, customers can limit their potential liability if there is a claim or lawsuit relating to the real estate. Although an LLC and a corporation can both help protect our customers from liability, we find that many of our customers choose an LLC to hold real estate. In addition, an LLC can have tax advantages over a corporation. For example, an LLC with only one owner may not have to file a separate tax return and its profit or loss can be included on the owner's tax filing. In contrast, a corporation must file a ... more