#023: Key Concepts When Purchasing Commercial Real Estate

Are you considering purchasing commercial real estate to create a brick-and-mortar space for your business? Today we go over how you should purchase property and other key concepts to consider.

When purchasing commercial real estate, it is important that the property is purchased with an entity all its own. We recommend an LLC that is taxed as a partnership versus an S-Corp, Corporation, or even an LLC taxed as a corporation.

There are a lot of benefits to purchasing commercial real estate with a separate entity. You can structure ownership of the property differently than the structure of ownership of the operating entity. You also have the possibility to keep and rent the space if you happen to sell or close your business, creating passive income. Additionally, as the owning entity, you can rent the space to your own operating entity with a rental agreement and fair market rent for tax benefits.

In this episode, we cover all the basics when it comes to purchasing commercial real estate. Tune in and check out our online Master Class for more important information on owning your own business. And if you're unsure if your business is ready for tax time, check out ModernCPA.com/Quiz to take a 60-second quiz to find out!

What’s Inside: 

• What kind of entity can and should purchase commercial real estate?
• Creating passive income with commercial real estate. 
• How to structure ownership of property versus ownership of business.
• Renting your commercial property to your own operating entity.
• Tax benefits and concerns with owning commercial real estate.
• What do you need to purchase commercial real estate?

Mentioned In This Episode:

Free Online Masterclass 3 Big Financial Mistakes New Business Owners Make
Take This FREE 60 Second Quiz To Find Out “If Your Business Is Ready For Tax Time?”
Modern CPA Online
ModernCPA - YouTube