Real estate company: Founding a company

Do you want to buy and rent out your first property? You have inherited a property and now want to work in real estate management, property management and other related areas yourself, or even more, you want to become a real estate investor yourself? Then the big question is, which company is the right one? What is the first step?

Basically, you have many different possibilities and options as to how you can set up your business for the future. To give you an initial 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, start-up tips, advantages, disadvantages and taxes. Everything you need to make a good decision.

Legal forms USA – Overview

• LLC (cf. GmbH)
• Limited partnership (cf. limited partnership)
• General partnership (cf. general partnership)
• Real Estate Limited Partnership (cf. Immobilien-KG)
• C Corporation (cf. stock corporation)
• S Corporation (cf. small stock corporation)
• Real Estate Holding (cf. Real Estate Holding)
• REIT/ Real Estate Investment Trusts (cf. real estate investment company)

Combine legal forms:

• Multiple Entities

For the sake of completeness:

• Sole Proprietorship (cf. sole proprietorship)
• Owning private real estate in the USA (cf. private real estate ownership in Germany)
• Tenancy in Common (TIC) (cf. fractional community)

Limited Liability Company (LLC)

An LLC (Limited Liability Company) is a flexible and popular legal form in the USA. It offers its owners the advantage of limited liability, similar to a corporation, but combines the tax advantages of a partnership. Profits and losses are attributed directly to the shareholders, which avoids double taxation. In addition, an LLC offers a simple structure and flexibility in administration, which makes it particularly attractive for small companies.

• LLC

LLC: My recommendation for the first 10 properties

For the first two to ten properties, an LLC (see GmbH in Germany) is best suited to minimize liability risks and at the same time take advantage of tax benefits. The LLC limits the personal liability of the owners, while profits and losses are attributed directly to the shareholders, which avoids double taxation. In comparison, a Limited Partnership (see KG) offers more flexibility in terms of passive participation, but the general partner bears full liability. A general partnership (see OHG) involves higher risks due to unlimited liability.

• More about the LLC

Limited Partnership

A limited partnership consists of at least one general partner and one limited partner. The general partner bears full liability for the company’s debts, while the limited partner is only liable to the extent of their contribution. This structure is often used in equity investment or real estate projects, as it enables a clear separation between active and passive participation. From a tax perspective, a limited partnership benefits from the fact that profits are only taxed at partner level.

• Limited Partnership

General Partnership

A general partnership is a partnership in which all partners have unlimited liability. This legal form offers flexibility and simple formation without major formalities. Profits and losses are attributed to the partners and are taxed personally by them. However, the partners’ full liability for the company’s debts entails a higher risk, which is why this form may be less suitable for certain business models.

• General Partnership

Real Estate Limited Partnership (RELP)

A real estate limited partnership (RELP) is a special form of limited partnership that is used for real estate projects. In this structure, passive investors invest as limited partners, while the general partner takes over the operational business and has unlimited liability. RELPs offer the advantage of tax transparency and are particularly suitable for large real estate investments where the parties involved want clear liability and profit relationships.

• Real Estate Limited Partnership

C Corporation

A C corporation is an independent legal entity that is separate from its owners. It offers a comprehensive limitation of liability for its shareholders. Profits are taxed at the corporate level and distributions to shareholders are subject to personal income tax, which can lead to double taxation. Nevertheless, this legal form offers advantages such as access to capital markets and the possibility of having an unlimited number of shareholders.

• C Corporation

S Corporation

The S Corporation is similar to the C Corporation, but with the difference that profits and losses are passed on directly to the shareholders, thus avoiding double taxation. However, there are restrictions on the number and type of shareholders. This legal form is often chosen by smaller companies that want to benefit from tax transparency but at the same time need the limited liability of a corporation.

• S Corporation

Real Estate Holding

A real estate holding company is a type of company that is used specifically for the ownership of real estate. This structure provides legal and tax separation between the owners and the property owners. It is ideal for investors who own and manage several properties without holding them directly in their own name. This allows liability risks to be reduced and tax advantages to be exploited.

• Real Estate Holding

REIT (Real Estate Investment Trust)

A real estate investment trust (REIT) is a special type of company that invests in real estate and is traded on the stock exchange. Investors can acquire shares and thus invest indirectly in real estate without owning real estate directly. REITs are tax-privileged, but must distribute a large part of their profits to shareholders as dividends. They are a popular option for investors looking for a liquid and diversified investment opportunity in the real estate sector.

• REIT

Multiple Entities

The combination of several company forms offers entrepreneurs the opportunity to spread risks and maximize tax advantages. For example, an LLC can be used in conjunction with a corporation to separate operational and administrative functions. This is particularly useful in the real estate industry or for more complex business models where different business areas need to be legally and fiscally separated.

• Multiple Entities

Sole Proprietorship

Sole Proprietorship, also known as a sole proprietorship, is the simplest legal form in the USA. The owner bears sole responsibility for the business, but also has unlimited liability for its debts. This form is suitable for smaller companies or freelancers who do not require a complex structure. As there is no separation between the company and the owner, taxation is levied directly on the owner’s income.

• Sole Proprietorship

Owning private real estate in the USA

Direct ownership of real estate in the USA as a private individual offers both opportunities and risks. Owners benefit from the increase in value of the property and the rental income, but must also observe the tax and legal obligations. In addition, personal ownership of real estate can lead to liability risks, which can be minimized by using a suitable legal form such as a real estate holding company or an LLC.

• Owning private real estate in the USA

Deutsche EuroShop: Share, facts and figures

Deutsche EuroShop in detail – The current share price and other facts and figures about the company.

• Buying shares – instructions (direct banks, online trading)
• Shares Dividend – Facts and Figures
• Construction: industry and investment
• Deutsche EuroShop – Company (external)
• Real Estate Shares – Overview

Share price: 12 months

Invest? WKN, ISIN and symbol:

• WKN: 748020
• ISIN: DE0007480204
• Symbol: DEQ

Here is the current share price with a review of the share price performance over the last 12 months.

Source: Ariva.de

Share price: 3 years

Deutsche EuroShop’s share price performance over the last 36 months.

Facts and figures on Deutsche EuroShop

• Headquarters: Hamburg
• Foundation: 1999
• Total assets: 2.964 billion euros
• Type of business: Public limited company

Status: 06/20

DAX: Index of the “German economy

The DAX is the most important German share index in trading. It takes into account the performance of the 30 largest and therefore most liquid companies on the German stock market. The DAX thus represents around 80 percent of the market capitalization of listed stock corporations in Germany.

DAX index family

In addition to the DAX itself, the Prime Standard of the DAX index family includes the MDAX, XDAX, TecDAX and SDAX.

• DAX
• MDAX
• XDAX
• TecDAX
• SDAX

Tip. DAX, NASDAQ, Dow Jones, Euro Stoxx. The chart overview to the indices from top indices:

• DAX, NASDAQ, Dow Jones & Co.

DAX Price: Real Time

Here is the current share price with a review of the share price performance over the last 12 months.

Invest? WKN & ISIN:

• WKN: 846900
• ISIN: DE0008469008
• Symbol: DAX

Chart: 3 year review

The DAX in a 3-year review:

Garden planning – tips and tricks for your dream garden

Spring is here and summer is just around the corner. It’s high time to spruce up the garden for great summer days. A new herb bed, a swimming pond or perhaps a complete redesign of your oasis of well-being? So that you are well prepared and can start redesigning your garden, we have prepared some great ideas to bring summer into your garden.

You don’t have a garden? No problem, because we show you how to make your balcony or terrace fit for the summer!

Garden planning and design – step by step to a beautiful garden

Every renovation should start with good planning. Whether a complete renovation or just a small remodel, the steps should be well thought out and planned in advance. The division of the garden into different sections is very important. Depending on the requirements of the garden, more or less space must be planned for the individual elements. It should also be considered in advance which elements should be self-built and which should be commissioned. Creating some small elements in the garden yourself is a nice memory and a great project, especially in spring. How to transform an allotment from an unkempt shrubbery into a great feel-good spot is detailed in the video. Valuable tips on design principles and the first planning steps are also given.

• Garden design always needs good planning in advance
• The various garden elements must be well coordinated and adapted to the garden.

Designing a low-maintenance garden – enjoy and don’t slave away

A garden should be one thing above all, and that is an oasis of well-being. Very few people want to do heavy gardening work on a daily basis, which is why when planning a garden, attention should always be paid to what follow-up work the elements entail. Many different beds, a large grassy area and a pool make more work than a swimming pond, low-maintenance plants and a pebble path. So when planning a garden, always consider your own needs to choose the right elements for your garden. In the video, a professional explains how a garden can be laid out in a low-maintenance way, what benefits arise from this and what needs to be considered in the planning phase.

• A garden can be made very apple friendly with the right elements
• A low maintenance garden is perfect to relax and enjoy

Build your own garden path – visual connection and separating element

A garden path offers many practical advantages. Visually, a garden path is very nice to look at and additionally a great element to separate the garden into different areas. A garden path can also be practical, as it usually leads from one part of the garden to another. Especially barefoot, it is often more pleasant to walk over a path than through the grass. Creating a garden path is relatively easy and depending on the look, can be done on your own. In the video, it is explained step by step how a garden path can be easily created by yourself and how useful it can be. The example is illustrated by a gravel path with slabs.

• A garden path can be built with a few simple steps selsbt
• Visually, a garden path is a nice subdivision of the individual sections and a connection between them

Creating a garden pond – a small oasis in just a few steps

A garden pond has a particularly great visual effect, as it creates a small water paradise in the garden where fish and plants can find a home. Since water is considered a symbol of tranquility for many, a pond can directly change the atmosphere. The gentle lapping of the water and the shimmering of the sun on the surface of the water give the garden a great atmosphere. The creatures in the pond and the design of the individual elements invite you to observe and discover them. Especially in small gardens a pond offers a great element, because not much space is needed, but a great effect can be achieved. The video explains step by step how easy it is to create a small pond in your own garden.

• A garden pond provides a feel-good area and greatly enhances the atmosphere of the garden
• The construction is quite simple and can be done by yourself

Build your own fireplace – the element of fire for an idyllic togetherness

A fireplace offers a varied element in the garden design. It can be used for great events, such as a barbecue, but also provide a place of relaxation and idyll on warm summer nights. A fireplace invites to a nice get-together and is especially popular with families. In large gardens a demarcation of the fireplace as a separate area with surrounding design is a great element to create a whole new area. But even small gardens can enjoy the benefits of a fire pit. The video shows how easy it is to build a fire pit yourself and what a great effect the element of fire can have in garden design.

• A fireplace is easy to build yourself by hand
• The garden gains a great element that changes the atmosphere in the garden and can be used in many ways.

Growing your own herb garden – the right herbs and creative freedom

Herb gardens offer great design elements in the garden and are additionally useful for the kitchen. The beds can be created in a wide variety of sizes and shapes and thus offer a lot of creative freedom for both small and large gardens. The arrangement of the beds is completely up to the owner. From thyme to rosemary and basil, anything your heart desires is possible. In the video, experts show how easy it is to create herb beds yourself, what needs to be taken into account and how the bed can also look visually appealing. Which herbs are particularly suitable for cultivation in German herb beds, you can find out in the video.

• A herb garden is not only practical, but also beautiful to look at
• The construction is very simple and can be individually adapted to all conditions.

Building a swimming pond – a big project with a big effect

A swimming pond is a larger project that also requires a larger garden. The effect that such an element achieves is spectacular. A well planned and built swimming pond can change the whole atmosphere of a garden and increase the comfort enormously. The natural design blends in with the natural surroundings and allows you to create an oasis of well-being. Through natural filtration with the help of certain aquatic plants, the pond even remains chemical and therefore chlorine free. The care and time required for maintenance is thus greatly minimized. In the video, a professional shows the entire planning and construction process of a swimming pond and a breathtaking result.

• A swimming pond is very inviting, especially in large gardens, and integrates well with nature.
• The advantages are numerous and especially on hot summer days the swimming pond is worth its weight in gold.

Designing small gardens – great effect with few elements

The trend towards small gardens is on the rise. Often there is simply not enough space to create an expansive garden. However, the design does not have to be restricted by the size of the garden. Even small gardens have the potential to become an oasis of peace and an idyllic place of relaxation. Choosing the right elements is crucial here. The video also shows how important it is to plan and position the individual elements precisely so that the garden does not appear overcrowded. The video makes clear that a great use of the given possibilities is nevertheless possible and even small elements can have a great effect.

• Even small gardens can become a paradise of well-being with the right planning
• The right elements in the right position allow perfect use of the given space