Business ownership comes with many complicated issues, especially when a company chooses to enter into ownership of commercial real estate properties. Though commercial real estate purchase can be tricky, the type of business structure that is outlined in the business plan can help an owner avoid large tax payments every year.

The Limited Liability Company Structure

The limited liability company is generally considered the best option for most small business owners, particularly when it comes to owning business commercial properties. It allows for leasing and loans to be paid out without accruing self-employment taxes, since any income reported for this tax must fall under the actual occupation of the landowner. Assuming the landowner is not in the business of making loans, any rent or lease payments would not fall into this category.

The General Partnership

This form of business ownership spreads the financial responsibility evenly among multiple owners of a business. This includes any real estate or lease income owned under the company name.

The C Corporation

Usually indicated by an Inc. or Ltd. designation, the C Corporation is the most complicated kind of business structure, and will cause the owners a considerable amount of startup costs. The owners of this kind of business are considered separate from the corporate entity, and therefore not personally liable for any taxes or legal fees. Many owners will personally hold commercial real estate while leasing it to their own corporations, providing a personal income separate from that of the corporation.

Sifting through commercial real estate listings can be a frustrating task, particularly for a small business with little capital to spare on commercial leases. Commercial real estate brokers know that expired listings could be a gold mine for both them and their clients.

Prospecting Expired Commercial Real Estate Listings

Businesses often have plans that involve expansion or moving away from their starting locations, so in order to keep their business plans on track, the original property must be sold. When these plans don’t pan out and the listings expire, the business owner is faced with the possibility of this failure to sell putting him or her in dire straits. This is doubly true for a business that is failing, so these companies are generally quite eager to sell.

Though expired listings for commercial real estate are excellent resources, particularly for commercial business brokers, it is imperative to understand why the business is wanting to sell in the first place. If the property itself is damaged beyond its insured worth, then most businesses with low capital will want to avoid the property. However, businesses with high capital may consider it an investment. Likewise, a business in the same or similar category should think carefully about opening a business in a location that previously held a failed business.

Any business owner can use these expired listings to his or her advantage, but a certified commercial real estate broker or consultant will have access to listing resources beyond the scope of the average new business owner.