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Updated over 12 years ago on . Most recent reply

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Brian Sorensen
  • Contractor
  • Indianola, WA
6
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72
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OK to make offer with a construction LLC?

Brian Sorensen
  • Contractor
  • Indianola, WA
Posted

Do you know of any reason why it wouldn't be a good idea to make an offer using a construction company LLC?

Thanks!

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

I agree with J. Scott, a business entity should be conducting they the types of business usual and customary to it's charter and by-laws or operating agreement. ..

A real estate company doesn't sell ice cream. A construction company can certainly hold real estate, but the risk exposure in construction is much higher than a property holding company, so as Jason mentioned, you are exposing your properties to a higher risk, IMO. I do think the buisness of construction and holding property is different enough to validate another company, as I did.

Might speak to an accountant to as to consolidating your earnings and having the construction comapny perform work, you may have issues if either are not making money, but it can be an advantage with multiple entities. :)

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