Legal Question in Real Estate Law in Florida

Forming an LLC to invest in Real Estate
My family and I are interested in investing in several properties in Florida. We are concerned about the tax implications and legal aspects of investing in multiple properties together. It was suggested to us that we form an LLC and buy the properties under that. Are there tax advantages to this? What are the additional advantages of using an LLC? Once we sell the property, how is the profit taxed and then distributed? Thanks for your help.

Asked on 12/02/04, 1:12 pm

2 Answers from Attorneys

Mitchell Roth MW Roth, Professional Law Corporation

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Re: Forming an LLC to invest in Real Estate

An LLC is a limited liability company. It is in some respects like a corporation, in others a partnership. For tax purposes you will probably want to use an LLC or a Limited Partnership. This should be determined after meeting with an attorney that does estate planning as a regular part of his or her practice. Estate planning is the art of planning to acquire, maximize, protect and distribute estates after death. Don't make decisions in isolation because they often can fall subject to the common law doctrine of "unintended consequences."

If you have the money to invest in several properties in FL, you have the money to work with a competent lawyer who can help you make the most efficacious decisions possible with consideration to your goals and priorities.

Answered on 12/05/04, 10:29 pm

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