Entity Forming Before Or After Contract
We are currently analyzing commercial properties for our own purchase and I am wondering if we should go ahead and form an LLC to purchase the property with already, or if we should wait until we have a property under contract?
Thank you for your time and attention.
Erica
[ Edited by pcdinvest on Date 02/19/2008 ]
[ Edited by pcdinvest on Date 02/19/2008 ]
Excellent Point. Thank you so much for the response!
Erica
And still, making it an assignable contract means that you can make the offer, and if it goes, thats fine, but you are not holding up a deal waiting for a corp to be formed....
Thanks again the more advice the better. I appreciate all of the responses. I am going to start and form my own LLC very soon, for some personal things I am getting into and then form for my company as projects come up.
One question though. If I am buying a duplex or quad for myself, do I still want to buy it in a LLC?
There will be issues with insurance and loans. The asset protection benefits you know about, but insurance may prove cheaper and provide better protection than the higher interest rates and insurance costs. Sometimes if you get the loan and then transfer it into the LLC you can just continue making the same payments in a new name, but most insurance companies will change your rates for an LLC if they carry you at all.
Chris
ypochris,
Are rates for LLC higher or lower than holding in your own name?
Thanks,
jon.