Selecting the right legal entity is a critical decision in real estate investing, influencing factors like liability, taxation, financing, and investor relations. This module covers the main U.S. entity types used in commercial real estate, including Sole Proprietorships, Partnerships, Corporations, and LLCs, highlighting their definitions, benefits, and key characteristics. Limited Liability Companies (LLCs) have become the preferred structure for real estate investments due to their combination of liability protection, pass-through taxation, and operational flexibility. Understanding the differences between these entities is essential before forming or recommending the most suitable structure for a real estate investment.
Module 1: Legal Structures in U.S. Real Estate Investment
About Course
Course Content
Lesson 1: Understanding Common U.S. Business Entities in Commercial Real Estate
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1. Sole Proprietorship
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2. General Partnership (GP)
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3. Limited Partnership (LP)
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4. C-Corporation
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5. S-Corporation
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6. Trusts
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7. Real Estate Investment Trusts (REITs)