Legal forms USA (company / corporation): LP, LLC, Corp., REIT & Co. – comparison, advantages and taxes

Legal forms USA – What types of company are there? If you want to start your first company, then choosing the legal form is one of the first steps in the company formation process. Whether it is a special real estate company or the formation of a start-up, here we have summarized all types of companies in the USA for you. But watch out: The legal forms in the USA differ from the legal forms in Germany. In this list of companies you will find explanations, advantages, disadvantages, costs, as well as the process including checklists and requirements, for each type of company. All legal forms in one list! Your first company? Learn how it works here: Found a company.

Real estate company: Start a business

You want to buy your first property and rent it out? You have inherited a property and now you want to be active in property management, property administration and other related areas or even more, you want to become a property investor yourself? Then the big question is, which company is right for you? What is the first step?

Basically, you have many different possibilities and options how you can set up your business for the future. To give you a first overview, we have written this guide to the different types of companies for you. Here you will learn about the different options you have as a founder in the USA. Definitions, startup tips, advantages, disadvantages, as well as taxes. Everything you need to have a good basis for decision making.

Legal forms USA – Overview

LLC/ Limited liability company

As a real estate investor, real estate LLCs can have many benefits. However, they also carry risks. To help you understand the pros and cons, we’ll give you a simple overview, including all the steps and explain the complete process of forming an LLC. Want to form a real estate LLC to invest? Everything from operating agreements to taxes and loans for LLCs to documentation can be found here. You can check it out here.

Limited Partnership/ Limited Partnership

With a limited partnership in real estate, you can avoid personal liability. With a general partner usually handling most of the duties and investors contributing only their capital, this is a very popular form of real estate investment partnership. What is a RELP? How are limited partnerships taxed?

S Corporation/ S Corporation

For real estate, S corporations have fallen somewhat out of favor, but not for good reasons. Forming an S corporation to reduce liability and save on real estate taxes is still worthwhile. Many people would benefit greatly from an S corporation for their real estate investments. What forms you need, how to file, what are the benefits, drawbacks and risks of S corporation for real estate and much more, we discuss here.

Multiple Entities/ Multiple Real Estate Companies

Is it worth owning multiple real estate investment companies? Without a doubt. With multiple companies, you are more likely to reduce liability and lower the amount you pay in taxes because you are free to choose between different types of companies. Whether you have multiple LLCs, an LLC and an S corporation, etc., there are many benefits to owning multiple real estate companies. We’ll give you guidance and explain when you should use multiple entities, answer the question of when you should own multiple LLCs, and more.

C Corporation/ C Corporation

Among the types of real estate companies, businesses and corporations, the C Corporation is one of the most popular for real estate investment and investors. It offers limited liability and, unlike the S Corporation, allows for a variety of investors. This means that it is often explained as a larger real estate investment business. We explain how to form a C corporation, documents for a C corporation, and advantages and disadvantages. With a C corporation, it is possible to avoid double taxation, and we explain a step-by-step guide on how to save taxes and make profits with a real estate C corporation.

REIT: Real Estate Investment Trusts

Real Estate Investment Trusts are forms of real estate ownership that allow investors to invest in a large portfolio of real estate assets. There are advantages, disadvantages, and potential risks to investing in REITs. REITs are basically an investment in real estate stocks. Taxation, how to set up a REIT, how to profit from REITs and more are discussed in this guide that will show you how to invest your capital wisely in real estate trusts.

General Partnership/ General Partnership

For those starting out in a real estate business, a general partnership can have many advantages. From tax advantages to a simple formation process, this type of business partnership is ideal for real estate investing. We’ll give you a detailed overview of forming a general partnership, the pros and cons of general partnerships in real estate, and answer key questions to help you decide: Is a general partnership a good decision for my real estate investment business?