Would you own real estate in a C Corporation? What about an S Corporation? Why or why not?

Answer 1

You should consult an accountant. My accountant explained to me that real estate should always be held in a LLC due to the fact that when you sell it will not be taxed as a corporate asset.

Answer 2

Great question.

Consult your state for specific laws; however, C class corporations are separate entities from you personally. IF the C class corp gets sued your assets are protected in most circumstances (unless your personally at fault then the "corporate veil" can be "peirced". S class corporation are more contected to you. Losses on S class corporations come off your personal taxes. In general S class corporations are meant for family businesses (in which you have S class stock shares).

I personally have seen it done both ways. My divorced friends hate S class corps versus C class corps, but other than that I think you will need to decide personally which legal registry is best for your situation.

Hope this helps.