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2 Replies Last post: May 3, 2009 2:41 PM by dublincpa

LLC or Solo Proprietorship?

May 2, 2009 2:37 PM

goldenshield 1 posts since
May 2, 2009

I want to form a corporation to which I can transfer real estate properties. The solo purpose of this corporation is to release me from the mortgage-backed properties limit, so I can finance more properties. Is there anybody can explain which one is better for me, LLC or Solo Proprietorship? Thanks

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instantv 59 posts since
Jan 20, 2009

1. Re: LLC or Solo Proprietorship? May 2, 2009 3:29 PM

The first point I will make is that as an LLC you will project your personal assets. Whereas as a sole proprietorship should you have legal matters your personal assets can be very much at risk. There are many additional advantages for forming an LLC over being a sole proprietorship but without knowing more about your situation the most I would suggest is for you to go to this link: http://sbinformation.about.com/od/ownership1/a/soleproprietor.htm and consult with an attorney.

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dublincpa 165 posts since
Jan 29, 2008

2. Re: LLC or Solo Proprietorship? May 3, 2009 3:02 PM

If this is a debt ceiling imposed by the bank, it won't likely help you to form an entity. Unless you have significant enough down payments that you have non-recourse loans, the bank's limits will likely still apply to you as guarantor.

What limit exactly are you attempting to circumvent by forming an entity?

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This Question is Possibly Answered

LLC or Solo Proprietorship?

May 2, 2009 2:37 PM

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