As a successful business owner, you might be considering the purchase of real estate in your business’s name. Learn more out the process in our latest post!
Buying real estate isn’t just for individuals, businesses can purchase real estate as well. Buying real estate under your corporate name is completely doable. In fact, it is done by buyers all the time. Keep reading to learn more about buying real estate for your business in New York.
Residential Properties As An LLC?
Investors will often use an LLC to buy property to both shield their name from public record and to take advantage of the protections an LLC can provide. Using an LLC to buy property will limit the liability of the owner’s income and personal assets. Investors will do this to add value to the LLC by incorporating a real estate portfolio. Your LLC can make money by leasing out the house or commercial space. You will need to pay your property taxes via the LLC as well as other homeownership costs. Your property taxes will likely be affected, so be sure to speak with your accountant before making the purchase.
Commercial Space – Should You Lease Or Buy?
Should You Put It In Your Name Or The Businesses?
Many business owners will opt to put the property in the business’s name as to protect their personal assets in case of a lawsuit.
Does buying a commercial space for your business really make sense for you?
There are many tax benefits that come along with purchasing property as your LLC. You will also have the feeling that you are in control. You won’t have to worry about the properly maintained because you are the one in charge of it! You will not have to ask to make changes to the space no will you feel like you are on someone else’s turf. If you are ready to purchase a space for your business, ask yourself some of these questions first.
Do you want to deal with property maintenance?
Just like owning a home, owning a commercial property will require maintenance. You will need to tend to the interior as well as the exterior of the building. When you choose to lease a space, much of this work will be taken care of for you. Make sure you have the time, energy and budget to properly maintain the building.
Do you plan on staying for the long term?
Buying a commercial property makes sense if you plan on being there awhile. Sure, anything can happen in the business world, but if your intent is to stay long-term, your costs will be less overall. Renting a property, without anything to show for it can cost you in several ways.
Turn Your Real Estate Into Extra Income
A great way to make some passive income, and have the property basically pay for itself, would be to buy a property that is larger than what you will need and rent out the additional space to other business owners in the area. This will provide you with many benefits, including additional income.