I currently have a photography business that I run as an S-corp. I recently have gotten the bright idea to attempt to invest in mobile homes here in San Diego Ca. This of course is the result of reading Rich Dad Poor Dad in one sitting. I'm still very new to the idea and I'm really just gathering information.
My question is, since I already have a corporation can I also do real estate business through that? Or would it be best just work as sole proprietor? I just figured since it is already formed, paid for and in good standings, it may be an awesome jump start to getting started with some investments (when the time comes, still have a lot to learn).
I appreciate all of your time and look forward to future conversations.
(feel free to warn me of my own impending doom if you think the MH route in my market is a horrible idea)
@Brandon Heath Typically, the answer to your question would be in the corporation articles of incorporation. Typically, there is a "purpose" clause or similar. In a perfect world, you would have had some language there that said something like "all legal purposes."
Even if not, if you are the only shareholder, you could actually decide to amend the articles of incorporation, though that is not ideal. Also, you may have registered for certain licenses in your state already
So, that is the "legally" correct answer. Now, here is the practical answer. If you are the only shareholder, there is no one else to tell you what to do. Effectively, you can do whatever you want as far as the operation of the business and its goals (assuming legal and ethical, of course).
It is very rare that a state would limit a corporation's activities, so long as the corp is licensed as the state requires.
Bottom Line: If you are licensed as the state requires and you are the only shareholder, there is no reason your corporation can't buy real estate. If there are other people, you probably need to make some formal amendments to your corp docs.
*** Not actual legal advice. Consult a local attorney as necessary.
Thanks a lot @Eric m.
The share holders are my wife and I and we are both on the same page. I will verify things with a local attorney but what you have said makes sense.
Do most realtors Incorporate or form an LLC? I currently work as an employee of the corporation. Could I continue this when and if I ever decide to take a faith leap into Real estate?
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