Expert: Brian Bocchieri - 1/26/2008

Question
My friend and I have related businesses and have been sharing rental space for the past 8 years.  We would like to purchase a building together listing both our corporations on the contract/deed.  We would not need any financing from the bank.  Can two corporations partner to do this?  We would both occupy the building.  Is there a better way to handle this and what do we need to be thinking about to avoid any future problems.   Thanks!

Answer
Hello Joan;

Congratulations on your pursuit I think it is a great Idea.  I am not an expert on this but I would check with your attorney I would suggest to set up a separate llc.. With both of you as members.  By doing this you can upstream income to the llc if need be to minimize taxes.  You will also have the tax advantages of the llc. and the protection from both your corporation and the newly formed llc.

There are other advantages but I don't want to totally confuse you.  This is only a suggestion please please check with you attorney.

I hope this has been a help.

Wishing you all the best

Brian Bocchieri