Owning Real Estate as a business

Sole Proprietorship

one person owns the whole business, its revenue, its liability, and all its responsibilities

Partnerships

a business entity legally formed for two or more individuals to share profits

General Partners

person in a partnership who takes the lead on day-to-day relationships and assumes full liability for the business

Limited Partners

person in a partnership who is only liable for the amount they have invested into the business venture

Joint Venture

a partnership formed by a group of investors for one venture; dissolves after the venture is complete

Corporation

a company or group of people recognized as one entity under the law; owners purchase stocks in the corporation (shareholder) and the corporation is run by the board of directors (elected by the shareholders)

S Corp

a corporation (that can only be formed with less than 100 shareholders) that is similarly taxed like a partnership to avoid double taxation

Fair Housing Act

it prevents landlords from refusing housing, financial providers from refusing financing, and real estate professionals from refusing services to a prospect on the basis of the following characteristics:

• Race

• National origin

• Familial status

• Color

• Sex

• Disability

• Religion