Real Estate Transactions & Dispute Resolution

Legal Help in California with Real Estate Entity Formation: LLCs and Partnerships

When forming an entity to own real estate, one of the first critical decisions to make is selecting the most appropriate type of entity and the subsequent formation of that entity. The most common ownership entities considered by real estate investors are limited liability companies, limited partnerships, and general partnerships. Operating businesses, such as management companies, are often corporations.

Whether you are a sole investor, have one or more partners, are doing a small private syndication, or are launching a large project with multiple investors, a real estate attorney in California who can drill through a comprehensive analysis can help you make the right decision from the beginning. Later changes can have adverse legal and tax consequences. We can help investors avoid this and other future problems.

Selecting the right ownership entity involves a thorough consideration of various business and tax factors. Business factors include the ease or difficulty of formation, costs of formation, management and control issues, agency authority of owners and management, liability of the owners for business obligations, transferability of the interests, ability to raise capital, securities issues, continuity of the business, and the number of participants involved. Tax factors are typically handled in conjunction with a tax advisor. A California real estate attorney with significant experience in real estate investor law can be critical to a businesses’ success early on.

“The decision as to how to do business with partners is as much tax-driven as it is business-driven,” says Jeff Lerman, Of Counsel, CunninghamLegal. “Different ownership structures, with their myriad of issues involving contributions, profits and losses, all have their own tax implications.”

Forming a new entity? Schedule a call with CunninghamLegal today. You may also want to watch our webinar on choosing business entities, read our blog about LLCs for Real Estate, and our full article on business formation.

Our expert Real Estate team can help with:

  • Real Estate Purchase and Sale
  • Entity Formation
  • Loan Documents
  • Construction Agreements
  • Commercial Leases
  • Dispute Resolution
  • Asset Protection
  • Syndication
  • Joint Venture
  • Intra-Family Transfers
  • Preserving Proposition 13
  • 1031 Transfers