Smart moves – Consider creating a separate real estate entity

Description

Abstract: A dealership that owns its buildings and land might find it prudent to separate the legal title of the business from the real estate. It can accomplish this by transferring the title to the real estate into a newly created legal entity such as a corporation, limited liability company (LLC) or trust. After it transfers the real property from its operating business, the dealership simply rents the space from the new legal entity in a landlord-tenant relationship. This article shows that this time-tested management strategy is easier and cheaper than one might think, and offers significant legal, financial and personal advantages for dealers.