A corporation is a legal entity properly registered with the secretary of state, characterized by limited liability, perpetual life, freely transferable shares, and centralized management.
An entity is the legal form under which property is owned, impacting the benefits and risks associated with owning real estate. It can vary widely and includes structures like corporations, individual ownership, joint ventures, limited liability companies (LLCs), limited partnerships, partnerships, and real estate investment trusts (REITs).
Incorporating refers to the process of forming a corporation under state regulations or providing a geographic area with the legal status of a political subdivision. Incorporation can protect personal assets by limiting liability to the assets owned by the corporation.
A Limited Liability Company (LLC) is an organizational form recognized in many states, offering limited liability protection to its owners and potential tax advantages of a partnership, making it an attractive option for real estate ownership.
A partnership is an agreement between two or more entities to enter into a business or investment together, where each partner may bind the other within the scope of their arrangement, and all partners share liability for the partnership's debts.
Syndication is a method of selling property whereby a sponsor (or syndicator) sells interests to investors. This process can take various forms such as partnerships, limited partnerships, tenancies in common, corporations, LLCs, LLPs, or Subchapter S corporations.
