I have to admit, by this point, I thought I would have consolidated several of the ways to take title into one post, especially the more "businessy" ones: Partnership, LLC, Corporation, and Trust . Then, I realized they each deserved their own description - whether I liked it or not!
Here are the key points of taking title as a Corporation:
- A corporation can be considered a whole unit. As one entity a corporation can hold title in severalty, or as a tenant in common.
- Since a corporation is not an actual person, it cannot die. Even if one of it's officers, shareholder or directors dies, the corporation will continue to exist until it is formally dissolved.
- A corporation has a board of directors who manage and operate it according to it's charter (rules it established for operating and governing itself)
- A corporation's rights to buy and sell real estate are governed by its charters.
- Even though a corporation can own income property, it is usually not desirable because the profits will be double taxed - once as a corporation and then again in the profits of each shareholder.
- There is more than one type of corporation.
- One type, the S corporation, provides the benefit of a corporation as a legal entity but avoids double taxation.
Modern Real Estate Practice, Seventeenth Edition
by Fillmore W. Galaty, Wellington J. Allaway and Robert C. Kyle
2006 by Dearborne Financial Publishing, Inc. (pp 142- 143)
The creation and operation of a corporation is complicated. Most people will never even have to think about taking title as a corporation. If they find themselves in such a position, there will undoubtedly already be an attorney involved.
In other words, if you don't know what a corporation is or exactly how it functions then you probably don't need to worry about it.
*This information is intended only to provide further clarification of real estate issues in Laramie, Wyoming. I am not an attorney.
Subscribe to CommentsComment