Posted by Eric (MI) on February 27, 2007 at 23:38:28:
I will be seeing my lawyer before anything gets done of course. I just want to have some ideas before I get in there.
Corporate Structure (S-Corp & LLC) - Posted by Eric (MI)
Posted by Eric (MI) on February 27, 2007 at 16:49:39:
Briefly, I have 5 investors ready to purchase property with me. They all have tremendous credit and would prefer to use their credit as opposed to cash. I am looking for a structure that will be best for such a situation. Doing a search I came across smallbusinessconsulting.com and one article (stressing it as only a general recommendation) talked about forming a S-Corporation for a management company and a LLC to hold the property. My S-Corporation would be a member of the LLC and the investor would be a member of the LLC.
What are the benefits and cons of such a structure? Is there a better solution? I have acquired property before but only in my own name, never on the scale I am looking to do now and never with investor backing.
Thanks for any information.
Eric