News Archive: Ask the Professional - How important is entity selection when acquiring commercial real estate?

For Immediate Release:
September 11, 2009

JAMES KOHLES, Chairman of the Board
jkohles@rina.com • 925-210-2180
1220 Oakland Blvd., Suite 300
Walnut Creek, CA 94596 www.rina.com

Q. How important is entity selection when acquiring commercial real estate?

A. There are many issues to consider when deciding what form of ownership is right for your situation. Limited liability is a major consideration. Even the best planning cannot avoid the possibility of personal liability for some claims but employing the right structure can make a tremendous difference in what claims may expose you personally. The discussion is more complex when multiple commercial property ownership is involved. Prudent safeguards should be put in place whenever there is a commercial operation involved, even in the case of single unit residential rentals. The risks are far too great to expose other properties, including your own residence, for this subject to go unconsidered. Entity choices, as well as the costs to form and maintain them, have been expanded with Limited Liability Companies, so there really is no reason to avoid the issue.