Choosing the Optimal Ownership Entity for Real Estate

THE 60-MINUTE LAWYER

The advent of limited liability companies has greatly simplified the process of choosing the best real estate ownership entity for a given situation. Practitioners need to be aware of the many legal and tax advantages that the LLC format offers for real estate ventures. But the LLC is not the only, or sometimes, the best entity option. Owners of real estate or operators of real estate ventures also frequently choose to hold their interests in limited partnerships, corporations, trusts, or other entities. Tax issues, limiting the personal liability of clients, asset protection, with or without bankruptcy, and exit strategies are usually the predominant considerations when forming a legal entity to own or manage real estate.

Learn about the basic tax, bankruptcy, debtor-creditor, and other legal issues involved in forming and operating a real estate holding entity. Learn how to choose the most appropriate vehicle for a new real estate venture, how to deal with tax and other issues involving real estate ventures that have been formed as entities other than LLCs, and how and when conversion of an entity into an LLC or other entity may be an option to consider. Hear an overview of the legal, bankruptcy, debtor-creditor, and tax issues involved in conducting real estate ventures through nominee trusts, general partnerships, limited partnerships, single member LLCs, corporations, and business trusts.