Form a Legal Ownership Entity
When forming an ownership entity, one of the first critical decisions to make is selecting the most appropriate type of entity and the subsequent formation of that entity. The most common ownership entities considered by real estate investors are limited liability companies, limited partnerships and corporations.
Whether you are a sole investor, have one or more partners, are doing a small private syndication, or are launching a large project with hundreds of investors, an attorney who can drill through a comprehensive analysis can help you make the right decision from the beginning. Changes later on may have severe legal and tax consequences. We can help investors avoid this and other future problems.
Lerman Law Partners: Accomplished Legal Counsel Right from the Start
Selecting the right ownership entity involves a thorough consideration of various business and tax factors. Business factors include the ease or difficulty of formation, costs of formation, management and control issues, agency authority of owners and management, liability of the owners for business obligations, transferability of the interests, ability to raise capital, securities issues, continuity of the business, and the number of participants involved. Tax factors are typically handled in conjunction with a tax advisor. An attorney with 30 years of experience in real estate investor law can be critical to a businesses’ success early on.
“The decision as to how to do business with partners is as much tax-driven as it is business-driven. Different ownership structures, with their myriad of issues involving contributions, profits and losses, all have their own tax implications.” — Attorney Jeffrey H. Lerman from the publication Avoiding The Biggest Mistakes Real Estate Owners Make When Dealing With Partners and Investors
Contact Our Lawyers
Count on the law firm devoted to commercial real estate investors: Lerman Law Partners. Contact us today. We have offices throughout California in San Rafael and San Francisco.