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.
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.