Buying Property Through a Corporation

There are a lot of advantages to owning real estate through a corporate entity, even if you have nothing more complicated than a single member LLC.  For one thing, you have some tax advantages versus if you just owned it in your own name, because corporate taxes are handled differently from individual taxes.  For another thing, you have an extra layer of protection, if you should happen to need to get sued by someone.  Of course, there are also some disadvantages to the entire corporate deal, such as the extra forms you have to fill out when you actually buy the property.  You will also have to make sure that your corporation files (which basically means that you file) the necessary forms for all of its necessary paperwork.

Consider the fact that while an individual is taxed for whatever they make, a corporation is taxed for the amount of money it makes after it spends on necessary business expenses.  If you want to save some money on your company’s taxes, you have the option of having useful work done to your properties, such as installing another bathroom or having the wiring updated.  These costs actually come out of your gross for the year, as well as making your business more valuable through the upgrading of the properties that it owns (and that you own, in turn).

Of course, there are going to be some sticking points, when it comes to buying your properties through your corporate entity.  For one thing, it is often a massive hassle to go through all of the hoops that some corporate sellers will put you through.  After all, nobody likes a deadbeat corporation.  Few do business with them at all.