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Reply with quote | #1 |
My wife and I recently created an S-Corp for our property management business (formerly a sole proprietorship). Our business primarily manages our own rental properties, but we also manage one of my father's properties. Our rental properties are currently held in our living trust. For liability protection, we are considering transferring the rental properties into our S-Corp, and then our living trust will hold the S-Corp stock shares. Does this sound reasonable or would you suggest something else? |
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Reply with quote | #2 |
I would not suggest holding property in an active business such as your S-Corporation. If your S-Corporation is sued for its property management activities (and there is definitely liability associated with this business) your property will be on the line. You need to segregate your property assets from your business. I would suggest forming an LLC to hold the properties (at least one) and the member of the LLC can be your living trust. |
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