I am a real estate broker and investor in Utah. Under what entity may I associate with non-licensed investors to split profits?

Riverton, UT Viewed 61 times. Posted 9 months ago in Corporate / Incorporation

I have been advised by a local real estate attorney that the S-corp I formed for my brokerage is fine to do business under for short-term real estate transactions, where I would be holding a property for no longer than six months.

Is my S-corp permitted to be a member of an LLC where another member is an individual or another LLC? Is it permitted to joint venture with the same entities? What constitutes a joint venture and is it a good idea for ad hoc, transaction by transaction, business associations? What documents would we be required to file?

Answers (1)

Mark L Rosenberg

This attorney is licensed in Maryland and 1 other state. Posted 9 months ago.

I always advise clients to form separate entities for each type of business. If your real estate license is held by the S corporation that you have, there may be a problem under the real estate laws there to have a non-licensed person receive payments from that company. Why not form an LLC just for the investment properties that you own. It simple, relatively cheap, and will help you separate your businesses.

Mark L. Rosenberg

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