Articles Tagged with Holding Company

Real-Estate-Investment-1-300x200It is often said that real estate, especially in California, is a strong and smart investment. Investing in commercial real estate in California can have both long and short-term financial benefits.  One may receive passive income from renting commercial real estate, which often includes operating costs for items such as tax, insurance, and common area and general maintenance and as Silicon Valley grows, the property may well appreciate resulting in substantial profits when the decision is made to sell the property. As such, many California companies are either investing in real estate or purchasing their own commercial properties to help offset the high costs of operating in Silicon Valley.

A common and effective way of holding commercial real estate is by forming a California real estate holding company – an entity that holds title to the real estate so as to attempt to minimize the owner’s overall liability in connection with the property and particularly with respect to litigation. The experienced San Jose real estate lawyers at Structure Law Group, LLP can evaluate your real estate investments and help you form an entity to protect your interests.

Benefits of Investing in Commercial Real Estate through a Real Estate Holding Company

Fotolia_136329992_Subscription_Monthly_M-300x200The sale of a business can be far more complicated than simply signing contracts and transferring assets from one side to the other. Tax and civil liability can be incurred in a traditional sale, anonymity may be required for a host of reasons, and in hostile takeovers, the buyer will need to bypass the seller’s Board of Directors altogether and go directly to the shareholders in order to have the sale approved. Establishing a shell corporation or holding company are two examples of ways to accomplish such goals in a business transaction. A Silicon Valley corporate lawyer can help your business identify its goals and determine which tools best meet its needs in any sales transaction.

What is a Shell Corporation?

As a general matter, a shell corporation can be thought of as a tool for business transactions. As described above, shell corporation can be used to achieve specific goals in connection with business transactions, such as maintaining anonymity, reducing tax liability, or obtaining financing. For example, many startup companies utilize shell corporations in order to store funds during early stages of financing.

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