There are a few different options for who could own the building the business occupies. The most common option is for the business to own the building, but there are other options as well. The business could rent or lease the building from another party, or it could enter into a joint venture with another.
Should my company acquire our business structure or should I own it personally?
Answer: If your firm is incorporated, it’s frequently a good idea to own the real estate used by your company personally.
If the property is sold by a regular firm, the profit will be taxed twice if you receive it through the corporation. However, if you have real estate personally, there is no second taxation. Although S corporations are not subject to double taxation, there may be issues when an S corporation sells its operating business and real property.
If you are the actual owner of the property, you may offer it to a business.
There are non-tax benefits of personal ownership of the commercial real estate, as well. Before you acquire company real estate or alter the form of ownership on the property you already own, talk to us and your attorney.