Posted by JHyre in Ohio on February 05, 2002 at 06:30:36:
You can buy first and transfer later, though you may double pay on the transfer tax…some states have exemptions for transfers to a wholly-owned subsidiary.
John Hyre
buying property under business name - Posted by ellen
Posted by ellen on February 02, 2002 at 19:16:55:
We own a small night club but it is held in a corporation. Can we buy investment property under the business? The business doesn’t have enough capital or credit to buy, so we would put up money personally. Can we loan money to the corporation? I know I need an attorney for all the paper work but would just like some basics. Any advice is appreciated.
Re: buying property under business name - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 04, 2002 at 19:10:10:
I’m with Jeff M…you do not want anything else in that corporation. If you itend to keep the investment properties and rent them out, LLC’s are the best choice in most states. Keep those properties out of your name and definitely out of the corporation’s name!
John Hyre
Re: buying property under business name - Posted by Brandon (FL)
Posted by Brandon (FL) on February 04, 2002 at 15:26:10:
I’m a loan processor at World Savings. They care less if the property will be under a personal name, corp, or business entity. Before this I thought putting properties into corp or business names was difficult. World Savings might just be an oddball.
Re: buying property under business name - Posted by Jeff M
Posted by Jeff M on February 04, 2002 at 14:13:38:
Ellen:
I am no lawyer, but I was in the bar businessfor many years. In that business, we attempted to get as many assets as possible OUT of the business’ name, in order to protect those assets from a law suit. In fact, when Liquor Law Liability Insurance rates got out of hand, we dropped it completely. We formed a new corporation whose only assets were the Liquor License, and the glassware, liquor and barstools. In that way, a lawyer would have to be crazy to come after us, since there would be little profit motivation.
As I said, I can see no advantage to buying the property under the business name. It would seem more prudent to me to start a new business for the Real Estate. However, check with the people on this board who are qualified to answer your question… I am not!
Good luck to you.
Re: buying property under business name - Posted by ellen
Posted by ellen on February 04, 2002 at 21:36:07:
Thanks. Can we go ahead and buy the property in our names then transfer it into an LLC later? We are getting ready to buy, maybe this week. I’m going to see a lawyer friend of mine tomorrow and run this by him.
Re: buying property under business name - Posted by ellen
Posted by ellen on February 04, 2002 at 21:33:06:
Thanks for the advice. I thought the whole idea of incorporating was to protect your assets, so that’s a real wake up call.