In this country, the options for what to do with your business assets are numerous. Many business owners seek to invest by branching out into new territory and exciting industries. Others may invest by purchasing commercial real estate. For those in the latter category, there are several benefits to developing your commercial real estate business as an LLC – especially for those who are looking to protect their separate businesses.
Benefits for having your commercial real estate in a separate LLC may include:
- When you own an LLC, or multiple LLCs, there is limited liability between each company. For example, should one business get into trouble financially or otherwise, the others are without risk.
- Your real estate property’s legal ramifications are distinctly separate from the others. If someone were to suffer an injury and attempt to sue, only the business in which they were injured may be subject to legal action. In this way, you will also benefit from business liability protection related to rental properties.
- An LLC also provides more tax flexibility, especially regarding business profitability and personal income.
- You may also have less ongoing administrative or paperwork-related demands; particularly those related to compliance needs and reports.
- It is easier to split your LLC should you decide to sell your property. Any loose ends or assets you may need to take care of are not tied to your other businesses.
While there is no perfect entity for your investment, there is a lot to like about taking the LLC route. To better understand the benefits and implications of having commercial real estate in an LLC, reach out to an experienced lawyer.