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LLC Best Entity to Own Business Real Estate

If you operate your business as a C corporation, you shouldn’t own your business property in your corporation. Why? If you sell the property or business you will be hit twice in taxes. Capital gains of C corporations are taxed at the standard corporate rate (usually 34%). Then, you will be taxed again when profits distributed to you as a shareholder.

We recommend our business owners establish an LLC to own their business property. And then the LLC can lease the property to the business.

This also spreads the lawsuit risk. If your LLC owns the property and someone sues your business, since the property is not owned by the business, it won’t be exposed to the lawsuit.

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