Company structure for 10-duplex development

[Katherine A Nixon]

Hello! We’re custom home builders in far west Texas (GPLLC) that recently purchased 9 acres for development (purchased in the name of GPLLC). We’ve decided the first phase of development will be 10 duplexes that we’ll build through GPLLC and hold and manage ourselves. We’re considering different company structures for asset protection. Here’s what we’re thinking. Create a multi-member limited partnership and transfer the land ownership to the LP. GPLLC will build the duplexes and we’ll create 2 LLCs under the LP that will own 5 duplexes each.   

This is our first foray into development and into investment property ownership, so we’d appreciate your feedback and opinion. We also understand we may need to consult a real estate attorney to finalize whatever plan we have. Thanks!

[Ashish Acharya]

The structure depends on if you are selling it or not.  You want S-corp in the structure of what you are going to sell. 

You need to have your CPA approve the structure before pulling the trigger.