QUESTION

How to add/buy a property under a company name?

Asked on Dec 02nd, 2013 on Real Estate - Florida
More details to this question:
I want to purchase property under a limited liability company(my own) and I wonder what is the recommended legal process and other things to keep in mind.
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1 ANSWER

Well, although it may seem simple, that’s a pretty loaded question.  The nuts and bolts are pretty simple… you can buy and sell property in the name of the business.  However, numerous potential risks do exist, as well as potential tax issues.  While this venue doesn’t really lend itself to a dissertation on all of the possible risks, I would advise you to consult with two very important people on these transactions – your CPA and your attorney.  Basically, you have all of the normal risks of buying property overlaid with issues concerning keeping in line with your business entity (i.e. are you keeping within the bounds of authority to make these decisions, bind the company, keeping proper records, etc.).  Now, one other issue that I would raise is to be very careful if you created the LLC solely for the purpose of ‘hiding’ property.  You do not want to get into a situation where you are making what’s called fraudulent transfers.  For example, if you (individually) have a property that goes into foreclosure, simply transferring the title into an LLC you created isn’t going to be your saving grace and may just put you into hot water.  It doesn't sound like you're in that situation, but just keep that in mind.  Sit down with an attorney to discuss your particular situation and plans in a confidential environment and you can create a plan of action from there.
Answered on Dec 03rd, 2013 at 10:04 AM

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