Most practitioners believe that a corporation is an inappropriate entity to hold real property because of the potential double taxation and other tax considerations says California Business Attorney Steven C. Peck.
Likewise, California Business Lawyer, Steven C. Peck explains," S corporations are subject to penalty taxes for built-in gains and excess passive income, limiting there usefulness". Peck goes on to say, "As a result, real property and other appreciating assets are typically held individually or in a partnership, which alternatives require that the owners assume general liability unless the entity is a limited partnership with a corporate general partner."
Steven Peck goes on to explain " An LLC may offer more protection to its members than a limited partnership if the members are actively involved in the operation of the business, and it avoids the necessity of establishing a corporate general partner."
Contact Steven Peck's Premier Legal toll free at 1.866.999.9085 to talk to an experienced california business attorney and visit us on-line at www.premierlegal.org.
