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Taking Title as a Corporation - Live in Laramie Real Estate

By
Real Estate Broker/Owner with Live in Laramie Real Estate, Laramie, Wyoming WY #12296

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 Corporationfrog with briefcase

  • 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.

From: 
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.  

Posted by

Brenda Whitman, Broker/Co-owner                                                Office Phone: 307.460.3298

Live in Laramie Real Estate                                                                Cell Phone: 307.399.5477

302 S 2nd Street, Suite 206                                                      E-mail: brenda@liveinlaramie.com

Laramie, Wyoming  82070                                                       Office Website:  www.liveinlaramie.com

Corey Vandenberg
Success Mortgage Partners - Lafayette, IN
More home mortgage loan options!

One thing worthy of mentioning is that many think they can avoid personal credit issues by simply forming a corporation and “starting over,” but that is simply not the case, most commercial loans demand a personal guarantee. And corporation owned financing has less favorable loan options. For example, commercial loans are usually variable rates, frequent annoying paperwork often yearly as part of a never ending monitoring process, along with high regular renewal fees, and unfavorable shorter terms in comparison to the government backed mortgages that we have all come to know and love... www.phmc.com/coreyvandenberg Still, there are some good loan options out there and the price of the property and it’s cash flow ultimately dictate whether someone should buy an investment rental property or not. Leave the business entity to your accountant and lawyer to help you come up with the right tax plan, but you should also consult a mortgage banker about what limits any choice may have on future financing as well...

Feb 02, 2018 08:05 PM
Brenda Whitman, Live in Laramie Real Estate
Live in Laramie Real Estate, Laramie, Wyoming - Laramie, WY
Broker/Co-Owner, Laramie, Wyoming

Wow, Thank you for the very good advice, Coery Vandenberg!

Feb 02, 2018 08:11 PM