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Forming a LLC to buy property?

woodchuck
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woodchuck Newbie

woodchuck

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I am in the final steps of purchasing roughly 85 acres of all wooded property. My attorney said it would be a good idea to form a LLC in order to protect myself and my partner from anything that could come up with the property. There is nothing wrong with it, but it is being bought from a large commercial company. They can't use it because a highway cuts this piece off from the main property. NY state sent me a tax paper asking how I will classify my llc. What Naics code I wills classify under. My question is does anyone have any experience with this sort of thing. I have no idea what type of agricultural business I could do or want to do. If anyone has set up an llc in order to purchase land let me know what you naics you were under and how much of a pita nystate was about things.

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chas0218 Newbie

chas0218

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Look up the county tax maps and see what parcels in your area are classified as and run it through the clerks office to see if it limits what you would like to do with the property i.e. hunt, cabin/dwelling, water source (well, or town water), septic/sewage.

 

Best bet is to use one of those GIS interactive tax property search. You can type in your street name and it will give you an aerial picture with adjacent properties and their tax maps boundaries.

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Zag Rising Star

Zag

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When we purchased the property next to us we tied everything into an llc, protection wise it's the way to go, it's not a pita just some time and extra money. It did not effect our taxes either. My understanding with the llc, if someone slips on my driveway and lawyers up, that is not an asset of mine.

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Chef Grand Master

Chef

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I'm sure people have formed an llc for this reason before. Just wondering if anyone had experience with it.

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I'm not lawyer but a LLC is really not ideal for this situation....

Question number one are you paying cash or financing this purchase?

And look at forming a membership corporation it way be much better for you for tax purposes


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Geno C Newbie

Geno C

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I don't see why he would tell you to form an llc for buying a pc of property... what kind of deed was conveyed at closing?
And what sort of issues does he see coming up?
I've heard of forming a llc partnership when buying quite a few tracts of land but for a single purchase and a warranteed deed, why?

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Zag Rising Star

Zag

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39 minutes ago, Geno C said:

I don't see why he would tell you to form an llc for buying a pc of property... what kind of deed was conveyed at closing?
And what sort of issues does he see coming up?
I've heard of forming Neighbor llc partnership when buying quite a few tracts of land but for a single purchase and a warranteed deed, why?

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Did u read my post, just the one reason I mentioned should be enough. What happens if one of the two die then what? Have a plan it pays off.

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Geno C Newbie

Geno C

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Did u read my post, just the one reason I mentioned should be enough. What happens if one of the two die then what? Have a plan it pays off.

I wasn't talking to you, I was posting in regards to the OP.
You do not need an llc to legally divi up land or transfer in any way in the event of the other owner dieing. I have an llc for my contracting Company and property investments.

It still doesn't block a owner from being sued personally if legal action was taken even tho it's limited liability. There can still be chance that action can be taken personally against said owners.

There for I ask why opening an llc just for A parcel of land for recreational purposes. You can buy insurance for that, if covering your button is something of concern

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woodchuck Newbie

woodchuck

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My real estate attorney suggested the llc just too cover ourselves. Still waiting to close. I don't know the particulars except there are no problems with the deed or anything screwy. The attorney suggested the llc and I took his advice. Right or wrong I think it's too late now. Thank you for your opinion on this everyone.

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Chef Grand Master

Chef

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My real estate attorney suggested the llc just too cover ourselves. Still waiting to close. I don't know the particulars except there are no problems with the deed or anything screwy. The attorney suggested the llc and I took his advice. Right or wrong I think it's too late now. Thank you for your opinion on this everyone.

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If you are paying cash form the LLC it will operate at a loss every year anyway and therefore the business will not have to pay taxes


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