Best Way to Hold Title to Your Commercial Property

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jul 16, 2021

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What is the best way to hold legal title to your commerical  property? You can take title in your own name, but you may want to consider forming a corporation or limited liability company (LLC) and putting the legal title in the name of the business entity. Using a corporation as a vehicle for holding title to your commercial real estate insulates you personally from claims against the corporation. However, the legal housekeeping costs might not be the best cost-effective way to limit personal liability. Using a limited liability company to hold title can be a very effective way without the responsibilities of forming and maintaining a corporation. You will be given the benefit of limited liability and also avoid the double taxation of incorporation.

By limiting your personal liability, you limit financial exposure of your other assets and businesses. In other words, you decrease the risk that you could lose your other assets such as your home and personal bank accounts if someone gets hurt on your property and wins a lawsuit against you. Your lawyer can help you decide if putting your commercial real estate into a separate legal entity is the best way to avoid potential financial harm.

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