Investing in a family business? Form a separate entity
I counsel people going into professional practices, and I tell them this often: If you are buying property, purchase the property as a separate entity. Having a separate entity (an LLC or a Subchapter S Corporation) for the property keeps the property out of any issues with the debt of the business itself. You can also move the business and keep the property, renting out the space to some other business.
The separate entity for property idea might also be good if you are asked to invest in a business by a relative, child, or friend. You could …read more