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 Fort Myers.
Residential Properties As An LLC?
Investors frequently opt to utilize an LLC (Limited Liability Company) when acquiring property for two primary reasons: to safeguard their identity from public scrutiny and to leverage the protective benefits offered by an LLC structure. Employing an LLC for property acquisition serves to mitigate the owner’s liability, shielding both their income and personal assets. This strategy is often employed to enhance the value of the LLC through the inclusion of a real estate portfolio. Generating revenue through leasing out residential or commercial spaces is a common avenue for LLC profitability. It’s essential to manage property taxes and other homeownership expenses through the LLC. Given the potential impact on property taxes, consulting with your accountant prior to finalizing the purchase is advisable.
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?
Similar to owning a residential property, owning a commercial property demands ongoing maintenance. Both the interior and exterior of the building require attention. Opting to lease a space often transfers much of this responsibility to the tenant. However, it’s crucial to ensure you possess the requisite time, energy, and budget to adequately maintain the building, regardless of whether it’s self-managed or leased out.
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 savvy approach to generating passive income and offsetting property expenses is to purchase a property larger than your own needs and lease out surplus space to other local business owners. This strategy offers numerous advantages, such as supplementary income streams derived from renting out the excess space.