Legal Question in Real Estate Law in California

Re: llc or incorporate

Your first question seems to ask if there is a greater benefit to purchasing real estate as an llc or a corporation. The answer is: "not really" but depends on your circumstances. LLC's are different than corporations in that members income is treated like that of partners or a sole proprietership while maintaining corporate protection. There are many other benefits and disadvantages to each and specific information would be needed to provide competent advise.

With respect to the marriage and divorce portion of the question. Generally, assets acquired prior to marriage (ie. shares in a corporation) are treated as separate property. However, once you are married, again, generally speaking, what you put into the corp/llc from the "community" is community property. I would suggest you consult a family law attorney in this regard.

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You should not rely solely on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue also may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

Re: llc or incorporate

Your wife will be entitled generally to 1/2 of all assets acquired during marriage. Your tax adviser will answer your questions about the form of LLC or corporation to use, based on your tax and income needs, if you have substantial assets and tax liability. If you don't then the nature of the business and whether you have other investors will dictate the form. Feel free to contact me for help in forming the corporation.

Re: llc or incorporate

Unless you have a proven track record in the purchase of real estate, a bank likely will not lend you any money as a LLC, sub-chapter S, C corportation, etc. You may be able to switch ownership title later on. Read some books on the subject so that you have enough knowledge to be able to ask intelligent questions covering all of what you need to know of the attorney who you go to to create the ownership body. Nolo Press puts out some good books.