In some situations the suit may be able to pierce the veil and go after the shareholders or owners.

I mean... shareholder meetings anywhere that can be written off.

I know of founding shareholders in certain tech companies that basically work for years starting and growing the company (with no pay or benefits), only to sell it 5 years later for $100M.  

This is one of the pitfalls of having rental properties in an S Corporation that investors are often unaware of.Also, keep in mind that if Tracy’s S Corp had other owners besides herself, then the other shareholders would not have been very happy with her when she transferred that property, as they would have also been required pay tax on that gain in proportion to their share of the S Corporation.

Some more details:-Old LLC owns a bunch of properties, has one shareholder. 

You can't have more than 100 shareholders.

See the items below (sorry copy and paste seems to have colored text in a weird way I can't fix):https://leginfo.legislature.ca.gov/faces/codes_dis...Noted at: 17708.03."...activities of a foreign limited liability company that do not constitute transacting intrastate business in this state include all of the following:(1) Maintaining or defending any action or suit or any administrative or arbitration proceeding, or effecting the settlement of those, or the settlement of claims or disputes.(2) Carrying on any activity concerning its internal affairs, including holding meetings of its members or managers.(3) Maintaining accounts in financial institutions.(4) Maintaining offices or agencies for the transfer, exchange, and registration of the limited liability company’s own securities or maintaining trustees or depositories with respect to those securities.(5) Selling through independent contractors.(6) Soliciting or procuring orders, whether by mail or electronic means or through employees or agents or otherwise, if the orders require acceptance outside this state before they become contracts.(7) Creating or acquiring indebtedness, evidences of indebtedness, mortgages, liens, or security interests in real or personal property.(8) Securing or collecting debts or enforcing mortgages or other security interests in property securing the debts and holding, protecting, or maintaining property so acquired.(9) Conducting an isolated transaction that is completed within 180 days and is not in the course of a number of repeated transactions of a like nature.(10) Transacting business in interstate commerce.It also states in the section following the above excluded items:(c) Without excluding other activities that may not be considered to be transacting intrastate business in this state within the meaning of this article, a foreign limited liability company shall not be considered to be transacting intrastate business in this state merely because its subsidiary transacts intrastate business in this state, or merely because of its status as any one or more of the following:(1) A shareholder of a domestic corporation.(2) A shareholder of a foreign corporation transacting intrastate business.(3) A limited partner of a foreign limited partnership transacting intrastate business.(4) A limited partner of a domestic limited partnership.(5) A member or manager of a foreign limited liability company transacting intrastate business.(6) A member or manager of a domestic limited liability company.

@Julia JonesBy being a limited partner in a limited partnership, a non managing member in an LLC, or a non officer shareholder in a corporation, you would not share the general liability of the entity (it’s possible to avoid general liability as a Corp officer or LLC manager, but in certain instances it’s less clear cut.You avoid specific liability for the lease by not signing or guaranteeing the lease or lease payments.Vacancy risk is a specific function of tenant quality and pre leasing.  

I would go one step further and indicate you need a written partnership or shareholders agreement (depending on what you choose for an organisation) which details the rights and obligations of all five of you ... in addition, it will set forth the rules under which any one of you may sell (or have called) your portion of the venture (shares, etc); what happens if one of you dies, etc.If you read my post in the above reference thread, you will see a variety of options for ownership.  

(If you are wondering, I am neither paid nor a shareholder of BP, I am just thankful for what they provided me and hope to be able to give back.)Happy investing!