Aktas Law, P.A. https://aktaslaw.com A Boutique Lawfirm Providing Concierge Legal Services in Florida. Fri, 11 Dec 2020 14:08:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.6 https://aktaslaw.com/wp-content/uploads/2020/08/cropped-AKTAS-LAW-LOGO-TRANSPARENT-32x32.png Aktas Law, P.A. https://aktaslaw.com 32 32 Important Steps in Purchasing or Selling Commercial Real Estate in Florida https://aktaslaw.com/important-steps-in-purchasing-or-selling-commercial-real-estate-in-florida/ https://aktaslaw.com/important-steps-in-purchasing-or-selling-commercial-real-estate-in-florida/#respond Fri, 11 Dec 2020 14:08:07 +0000 https://aktaslaw.com/?p=9189 The post Important Steps in Purchasing or Selling Commercial Real Estate in Florida appeared first on Aktas Law, P.A..

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Purchasing and selling commercial real estate in Florida is often a complex and lengthy process because each transaction depends on many different factors. These factors are including but not limited to, state, county, and local laws, industry-specific considerations, market trends, the purchaser’s intention, the method of financing, and the timing of the closing.

In this article, you will be able to understand the overview of a commercial real estate purchase and sell process.

Preliminary Considerations

Brokers typically prepare marketing materials for the property. These materials often influence the sale price and other key financial terms.

Letter of Intent (LOI) typically acts as a basis for further negotiation and does not bind the parties to close the sale of the property.

Purchase and Sale Agreement

A real estate purchase and sale agreement is a hybrid between state laws governing contracts and those governing real estate. Every provision is up for negotiation. The purpose of a purchase and sale agreement is to specify each party’s rights, obligations, and liabilities; it details the steps of the process; and defines the property is being conveyed.

Title and Survey Matters

In Florida, title searches are typically prepared by title companies. The title company or title agent typically issues a commitment for title based on the results of the title search.

Closing Documents

Closing documents including but not limited to, deed, bill of sale, an assignment of contract rights, a certificate that no tax is to be withheld under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), closing statement, transfer taxes, and real estate taxes.

Closing

In Florida, closings for commercial transactions are typically escrow closings. In an escrow closing, the escrow agent holds all of the original closing documents and funds pending the closing. If it is not an escrow closing, it will be a sit-down closing.

Post-Closing

Sometimes parties’ obligations do not end with the closing. There might be some other steps that should be followed after closing such as, ensuring that all required notices to tenants and service contract providers are delivered promptly following the closing, ensuring the filing and recording in the county recording office of all original documents requiring recordation.

If you’re planning to purchase commercial real estate in Florida, give us a call @ 305-728-5331 to set up your consultation with our team.

 


Disclaimer: The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this post may not constitute the most up-to-date legal or other information. Readers should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this post without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this post does not create an attorney-client relationship between the reader, user, or browser and Aktas Law, P.A. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is;” no representations are made that the content is error-free.

 

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Being a Foreign Company (Non-US) Investor in Florida https://aktaslaw.com/being-a-foreign-company-non-us-investor-in-florida/ https://aktaslaw.com/being-a-foreign-company-non-us-investor-in-florida/#respond Thu, 03 Dec 2020 21:24:31 +0000 https://aktaslaw.com/?p=9176 Transferring a real estate property can be difficult enough with living abroad or having only limited stay in the U.S. thus, foreign investors need a reliable and experienced consultation that can move transaction smoothly toward closing while minimizing the risks. This article will provide an overview of factors that need to be known by a […]

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Transferring a real estate property can be difficult enough with living abroad or having only limited stay in the U.S. thus, foreign investors need a reliable and experienced consultation that can move transaction smoothly toward closing while minimizing the risks.

This article will provide an overview of factors that need to be known by a foreign investor when buying, selling or leasing a real estate in Florida.

State Permission

In order to acquire real property in Florida, state permission is not required. However, all non-Florida entities intending to engage in a trade or business in Florida must obtain a Certificate of Authority. Trade or business engagement includes managing, leasing, or developing real property or other real estate activities.

Restriction

There is no restriction imposed by Florida statutes on foreign investors purchasing real property or interests in entities that own real property.

Tax Obligations

There are no taxes imposed by Florida unique to foreign owners. However, after the transfer of US real property interests by a foreign owner, federal law imposes withholding, income tax reporting, and payment obligations.

Foreign investors and entities are subject to the same taxes as residents who buy, sell, and own property.

A foreign investor does not need a green card or to be a citizen in order to acquire a real property in Florida, however, will need an either Individual Tax Identification Number (ITIN), or an Employer Identification Number (EIN).

If you’re a foreign investor in Florida, give us a call @ 305-728-5331 to set up your consultation with our team.

 


Disclaimer: The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this post may not constitute the most up-to-date legal or other information. Readers should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this post without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this post do not create an attorney-client relationship between the reader, user, or browser and Aktas Law, P.A. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is;” no representation are made that the content is error-free.

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ALERT: Nonresident Alien U.S. Real Estate Activities Targeted by IRS Audit Campaign https://aktaslaw.com/alert-nonresident-alien-u-s-real-estate-activities-targeted-by-irs-audit-campaign/ https://aktaslaw.com/alert-nonresident-alien-u-s-real-estate-activities-targeted-by-irs-audit-campaign/#respond Thu, 15 Oct 2020 18:29:40 +0000 https://aktaslaw.com/?p=8916 The post ALERT: Nonresident Alien U.S. Real Estate Activities Targeted by IRS Audit Campaign appeared first on Aktas Law, P.A..

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If you are a nonresident alien investor thinking of purchasing Florida real estate, you should seek appropriate legal and tax advice with respect to the acquisition, operation and disposition of U.S. real property interests.

As announced by the IRS Large Business & International Division on October 5, 2020, a new audit campaign will focus on nonresident aliens receiving rental income from U.S. property and the requirement to comply with the related Internal Revenue Code’s reporting and filing requirements.

On the State level, while there are no taxes imposed by Florida unique to foreign owners for owning real estate, foreign investors and entities are subject to the same taxes as residents who receive rental income from property they own in Florida.

This new campaign comes on the heels of another audit campaign announced Sept. 14, 2020, targeting the noncompliance of nonresident aliens in connection with the withholding of tax and reporting obligations on the disposition of U.S. real property interests under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). The takeaway is that the IRS is focusing on nonresident alien noncompliance in this area, where both initiatives are geared to enhance compliance through targeted, issue-based examinations, education and guidance.

If you’re a nonresident alien with a Florida real estate purchase plan, give us a call @ 305-728-5331 to set up your consultation with our team.

 


 

Disclaimer: The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this post may not constitute the most up-to-date legal or other information. Readers should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this post without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this post do not create an attorney-client relationship between the reader, user, or browser and Aktas Law, P.A. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is;” no representation are made that the content is error-free.

 

 

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Plan For a More Appealing Wynwood is Approved! https://aktaslaw.com/plan-for-a-more-appealing-wynwood-is-approved/ https://aktaslaw.com/plan-for-a-more-appealing-wynwood-is-approved/#respond Thu, 15 Oct 2020 18:29:40 +0000 https://aktaslaw.com/?p=9136 The post Plan For a More Appealing Wynwood is Approved! appeared first on Aktas Law, P.A..

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PLAN FOR A MORE APPEALING WYNWOOD IS APPROVED

Wynwood is currently home to unique brands, retail shops, art galleries, street-art, concept bars, antique shops, restaurants and more. Over the years, Wynwood transformed into a work-play-sleep neighborhood after the continuous investments and development. Is it enough? NEVER!

 

Wynwood Business Improvement District (BID) working to make the neighborhood greener and walkable! City of Miami Commissioners approved the implementation of a new Wynwood Streetscape Master Plan (WSMP).

 

What is Wynwood Streetscape Master Plan (WSMP) ?

 

It is the first of its kind in the United States! The goal is plan is to make Wynwood more walkable, active, sustainable, diverse, livable, safer, mixed-used neighborhood.

 

Project includes new crosswalks, mid-block crossings, widened sidewalks, protected bicycle lanes and district-wide signage that will guide pedestrians and motorists throughout the area and promote connectivity with neighboring Midtown, Overtown and Edgewater.

 

Get ready to meet with a new concept “Woonerfs” – The plan is to install “Woonerfs” which means “living street” in Dutch. It is a new way to design people-friendly streets and open-spaces. In a woonerf, the street is shared among pedestrians, bicyclists, and motor vehicles; however, pedestrians have priority over cars(It worked in Europe, we have faith in Miami!). Woonerfs, reduce driving speeds and increase levels of safety, create more efficient use of space, increase socialization and activities, create a more attractive street.

 

Concrete Wynwood transforming into a Green Wynwood – streetscape plan will provide more shade to pedestrians and people who want to hang out beneath a tree shade.

WSMP is not only a plan for a greener Wynwood but also focuses on the flooding problems and detrimental effects of storm events.

 

This project will bring more investments, jobs, and visitors to Wynwood!

  Sources https://wynwoodmiami.com/city-of-miami-approves-wynwood-streetscape-master-plan/ https://www.thenextmiami.com/arquitectonicageo-proposes-wynwoodwalks-as-part-of-streetscape-master-plan-first-look/  


Disclaimer: The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this post may not constitute the most up-to-date legal or other information. Readers should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this post without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this post do not create an attorney-client relationship between the reader, user, or browser and Aktas Law, P.A. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is;” no representation are made that the content is error-free.

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Soulpreneurs – Everything You Need to Know About E-2! https://aktaslaw.com/soulpreneurs-everything-you-need-to-know-about-e-2/ https://aktaslaw.com/soulpreneurs-everything-you-need-to-know-about-e-2/#respond Wed, 30 Sep 2020 22:02:07 +0000 https://aktaslaw.com/?p=8907 Everything You Need to Know About E-2 If you are a “soulpreneur” and have a great business structure to start-up a new business in the United States, but do not know which visa will be the most suitable for you, in this article, we can answer some of your questions. What is an E-2? E-2 […]

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Everything You Need to Know About E-2

If you are a “soulpreneur” and have a great business structure to start-up a new business in the United States, but do not know which visa will be the most suitable for you, in this article, we can answer some of your questions.

What is an E-2?

E-2 visas are for citizens of countries with which the United States maintains treaties of commerce and navigation. E-2 visa is a non-immigrant visa for investors, entrepreneurs, and people looking to run a business in the United States – we call them dreamers and want to be a part of their dreams!

Since the E-2 visa is a non-immigrant visa category, the E-2 visa is temporary and does not directly lead to a green card.

Although there is a lengthy list of requirements for E-2 eligibility, these standards are depending on a great amount of judgment and discretion. With that being said, in some cases, you may not be eligible for E-2 even though you provide all documents. The burden of proof to establish status rests with the applicant.

The applicant must be coming to the United States solely to engage in substantial trade principally between the United States and the treaty country. Trade is defined as transactions involving goods and services, as well as technology-related services.

An applicant must invest, or be in the process of investing, significant capital in an enterprise s/he will direct, and which will not be a marginal enterprise entered into solely to make a living.

There is no limit on the renewal of the E-2 visa.

The applicant does not have to be in the United States to apply for E-2. There are two ways to apply for E-2:

  • Get an E2 visa at a US Consulate outside of the US
  • Change status to E2 visa status while lawfully present in the US

Benefits of E-2 Visa

The applicants:

  • Spouse, unmarried children under 21 years old can also qualify for E-2 visas
  • The spouse can apply for work authorization
  • Children can go to school in the United States

Requirements of E-2 Visa

To qualify for E-2 classification, the applicant must:

  • Be a national of a country with which the United States maintains a treaty of commerce and navigation. (Please see below the list of treaty countries)
  • Maintain E-2 business actively, for-profit business
  • Have invested, or to be actively in the process of investing
  • Have the intent to depart once E-2 status ends.

The applicant does not necessarily need a physical office space to qualify for an E-2 visa.  Although having physical office space may be relevant in determining whether the requirements for an E visa have been met, it is not a requirement to qualify for the visa.

A trader or investor with the nationality of a treaty country but who holds U.S. LPR status does not qualify to bring in employees under INA 101(a)(15)(E). Moreover, stock shares owned by U.S. permanent resident aliens cannot be considered in determining the nationality of the business.

Investment

  • Funds must be lawful
  • There is NO set minimum investment amount to qualify. The Foreign Affairs Manual specifically states: “No set dollar figural constitutes a minimum amount of investment to be considered ‘substantial’ for E-2 visa purposes.”
  • Funds must be already invested in the E-2 business at the time of filing or they must be in process of being invested.
  • A piece of residential real estate or an investment in the stock market will not work. Investments should be active, not passive.
  • The investment must be irrevocably committed to the E2 business, must be at-risk, and must be spent on the business and operation

Marginality requirement

  • An E-2 enterprise does not have to be a large business that hires dozens of employees, in some cases hiring at least one employee can be sufficient.
  • The cores of E-2 visa are the creation of job opportunities and positive economic impact, even though the law does not specifically mention.
  • For start-ups, submitting a comprehensive business structure that clearly states the projected future earning will satisfy the marginality requirement. The business structure should be detailed and accurate, supported by strong evidence.

Who Can be the Investor?

An individual or foreign business can invest in a United States business or establish a company.

Investment as an individual

  • The applicant will be considered as the principal investor
  • If the applicant is a dual national, s/he may still qualify for an E2 visa based on the applicant’s nationality of the treaty country.

Investment by foreign business

  • The foreign business will be considered as the E2 principal investor.
  • The nationality of the business is determine based on the individual owners of the business.
  • The business must be at least 50% owned by nationals of the treaty country

How long can you stay in the US on an E2 visa?

  • The validity of visa ranges from 1 to 5 years however, it doesn’t mean that the treaty investor can stay in the US for 5 years. With an E-2 visa, the investor is granted 2 years of status each time the investor enters the US.
  • With a valid E2 visa, an investor can exit and re-enter the US to get an additional 2 years of status.
  • There is no limit to the number of times the investor can renew the E2 visa as long as company meets all the E-2 visa requirements.

How long does it take to get an E2 Visa?

There are 3 main steps of E-2 visa, document gathering, legal preparation, and consular processing or change of status. Every step has its waiting periods and processing times. While the documents gathering process depends on how fast and accurate the applicant provides the documents, the consular process depends on which embassy you are applying to the E-2 visa.

E-2 Visa Employees

The principal applicant can obtain E-2 visas for qualifying employees who are the same nationality as the investor and the applicant must be able to prove that the employee is necessary for the fulfillment of the applicant’s endeavor. This is easily proven if he or she is a manager or executive, but can also be proven if he or she has specialized knowledge that makes them instrumental to the operation or development of the enterprise.

List of E2 Treaty Countries

 

Albania Czech Republic Kosovo Romania
Argentina Denmark Kyrgyzstan Senegal
Armenia Ecuador Latvia Serbia
Australia Egypt Liberia Singapore
Austria Estonia Lithuania Slovak Republic
Azerbaijan Ethiopia Luxembourg Slovenia
Bahrain Finland Macedonia Spain
Bangladesh France Mexico Sri Lanka
Belgium Georgia Moldova Suriname
Bolivia Germany Mongolia Sweden
Bosnia and Herzegovina Grenada Montenegro Switzerland
Bulgaria Honduras Morocco Thailand
Cameroon Ireland Netherlands Togo
Canada Israel Norway Trinidad & Tobago
Chile Italy Oman Tunisia
China (Taiwan) Jamaica Pakistan Turkey
Congo (Brazzaville) Japan Panama Ukraine
Congo (Kinshasa) Jordan Paraguay United Kingdom
Costa Rica Kazakhstan Philippines Yugoslavia
Croatia Korea (South) Poland  

 

Major countries that do not have an E2 Treaty with the United States: Brazil, China, India, Russia.

Sources

 

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COMMERCIAL REAL ESTATE – THEY CAME, SAW, RELOCATED! https://aktaslaw.com/commercial-real-estate-they-came-saw-relocated/ https://aktaslaw.com/commercial-real-estate-they-came-saw-relocated/#respond Wed, 23 Sep 2020 21:03:09 +0000 https://aktaslaw.com/?p=8896 The post COMMERCIAL REAL ESTATE – THEY CAME, SAW, RELOCATED! appeared first on Aktas Law, P.A..

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What is Commercial Real Estate?

Commercial Real Estate (CRE) can be defined as any property used for purpose of business or to provide workspace. In comparison with residential real estate, CRE provides income for investors. Income sources including, but not limited to, rent, fees, proceeds from sale, tax benefits etc.

The different classifications of CRE are Leisure (hotels, public houses, restaurants, cafe, sport facilities etc. ), Retail (stores, shopping malls, shops, office), Healthcare (medical centers, hospitals, nursing homes), Multifamily (apartments). Commercial real estate also includes lands which have the potential to bring income in the path of the future.

Why Commercial Real Estate in Florida?

The reasons why South Florida is one of the best commercial real estate market for investors are Florida’s fiscal stability & economy, population & business growth, competitive workforce, growth in the retail market, business incentives, foreign investment in CRE, investment trusts and developed infrastructure. In addition, South Florida provides cultural diversity due to the closeness to South America and Caribbean Islands, and incoming tourists all around the world. Florida is #1 for foreign homebuying for 12th straight year accounting for 22% of all the international purchases following by California by 15%. The Sunshine State is dominating the market in terms of foreign investors.

According to US News & World Report ranks Florida:

#2 in terms of fiscal stability,

#3 in education and

#9 with its economy nationwide.

These rankings make Florida an attractive hub for both domestic and global investors. Especially South Florida leads the commercial real estate market supported by continually solid returns, consistent population growth, tourists from all around the world, tax-friendly laws, and innovative development projects.

Besides the advantages mentioned above, Florida’s transportation opportunities support the active international trade and foreign direct investment to the state. Florida is ready to accommodate requirements in terms of transportation as it has airports, seaports, highways, and railways.

Florida is #2 in terms of infrastructure with its 15 deep-water seaports, 19 commercial service airports, 2 spaceports, 12,000+ miles of highways and nearly 3,000 miles of freight rail track routes and Miami leads Florida in infrastructure.

Effects of Covid-19 on CRE Market in Florida

2019 was a fruitful year for Florida’s growing CRE market. Forbes listed several Florida cities including Fort Lauderdale, Orlando, and Jacksonville as the best bets for real estate investors in 2019.  In 2020, despite the Covid-19, a pandemic no one saw coming, an epidemic that became a global showstopper and continues to expand as we speak, substantial developments took place. South Florida real estate market remained strong during the pandemic, and growth in the region has continued because the market is benefiting from low-interest rates.

During Covid-19, people acknowledged the importance of living in roomy apartments or houses which surrounded by open-space where they do not have to worry about social distancing. Florida, “the Sunshine State”, satisfies all in one – big living spaces for every budget, beautiful warm weather throughout the year, open spaces everywhere and priceless beach. Research show that, people fled away metropolitan cities such as New York during Covid-19. One interesting study indicates that, in April 2020, mail-forwarding requests from Manhattan and Brooklyn residents were substantially high. Before Covid-19, New Yorkers used to come Florida for vacation or to buy a second house, now they are coming to live and become a Floridian! The reason is so simple: you can save more money in Florida – there is no state or local income tax and houses are cheaper!

There is a correlation between commercial and residential real estate investment. Overall, both developments will complement each other, people will follow jobs or vice versa. In other words where there is a residential real estate development CRE development will follow.

According to the Miami-Dade Beacon Council, they are working closely with a variety of companies looking to relocate or expand in Miami-Dade County, especially technology companies. The largest TAMI (Technology, Advertising, Media, and Information) companies have their eyes on Wynwood, Spotify inked a lease to house its South Florida headquarters in Miami’s Wynwood neighborhood. Tech firms including Facebook, Apple, Google, Uber and Chewy, take up nearly 3 million square feet in South Florida. Attraction to Florida is not just limited to tech companies, investment firms, insurance companies, hedge funds and family offices have also been making the move.

There are countless reasons why people choose to live, work, and invest in Florida. The Sunshine State offers an almost ideal work-life balance with excellent job opportunities. Forecasts show that the CRE market will continue its growth even though the near future might be a little rocky.

Sources


Disclaimer: the information provided on this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this post may not constitute the most up-to-date legal or other information.  Readers should contact their attorney to obtain advice with respect to any particular legal matter.  No reader, user, or browser of this site should act or refrain from acting on the basis of information on this post without first seeking legal advice from counsel in the relevant jurisdiction.  Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this post do not create an attorney-client relationship between the reader, user, or browser and Aktas Law, P.A.  All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed.  The content on this posting is provided “as is;” no representations are made that the content is error-free.

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WHAT DO YOU NEED TO KNOW BEFORE BUYING A REAL ESTATE THROUGH AN LLC? https://aktaslaw.com/what-do-you-need-to-know-before-buying-a-real-estate-through-an-llc/ https://aktaslaw.com/what-do-you-need-to-know-before-buying-a-real-estate-through-an-llc/#respond Wed, 16 Sep 2020 19:12:10 +0000 https://aktaslaw.com/?p=8832 The post WHAT DO YOU NEED TO KNOW BEFORE BUYING A REAL ESTATE THROUGH AN LLC? appeared first on Aktas Law, P.A..

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WHAT DO YOU NEED TO KNOW BEFORE BUYING A REAL ESTATE THROUGH AN LLC?

Limited Liability Companies (commonly referred to as LLCs) may provide flexibility as to record-keeping requirements, potential tax benefits, limited liability for members, and easy management. In Florida, LLCs are frequently utilized to hold real estate. This article will provide an overview of LLC characteristics while assessing broadly the pros and cons of utilizing an LLC to make a real estate acquisition in Florida.

LLC in a Nutshell

A Florida LLC is a hybrid business association which combines the limited liability of a corporation with the flexibility of a partnership. An LLC is a separate legal entity from its owners.

Membership – Owners of an LLC are called “members” rather than shareholders or partners. There are no restrictions on the types of LLC members other than that a member cannot be a bank or an insurance company. An individual, a corporation, an s-corporation, another LLC, or even trusts can be a member of LLC.

Taxation – LLCs are commonly referred to as “pass-through entities.” Depending on the number of the members in the LLC the IRS will treat the LLC like a partnership or sole proprietorship for tax purposes. While single-member LLCs treated may be treated as a sole proprietorship, multi-member LLCs may be treated as a corporation.

Management – A Florida LLC is managed by its members unless the articles of organization or operating agreement expressly provides for the LLC to be manager-managed. A member manager, a nonmember manager, or a board of managers may manage an LLC.

Operating Agreement – operating agreement is the most important document of LLC as it regulates the business’ functional and operational decisions in addition to listing members and contributions and outlining clarity in how decisions will be made as well as how to handle disagreements among the members. Even though operating agreement is not specifically required in Florida for the LLC to be operational, it is wise to have one in any case. In the absence of an operating agreement, LLC is governed by the state’s default rules contained in the relevant statute and developed through state court decisions which continuously interpret the provisions contained in Florida’s Revised LLC Act.

Limited Liabilities of Members – the members of the LLC have limited liability for debts, obligations, and other liabilities incurred by the business. Members have protection from business debts, and they are not personally liable. This gives significant protection to members; hence it encourage investors to take risks in business. However, formalities of the LLC must be maintained for the courts to recognize the limited liability attached.

Formation – to form an LLC, the organizers must file “Articles of Organization” with the Florida Department of State – Division of Corporations.

It is time to talk about the main question – is it a promising idea for you to buy a real estate property through an LLC?

Well, the answer can be yes or no depending upon your purpose of purchase, with the key differentiating factor; Business purpose vs. Personal use. While you certainly can use an LLC to hold commercial real estate assets, it doesn’t always make sense for an LLC to hold residential real estate, especially when that real estate is for personal use. You may choose to utilize an LLC if you are purchasing an investment property to produce rental income from renting that real estate to third parties.

The Pros of Buying a Real Estate Through an LLC Liability – as detailed above, LLC can limit liability by protecting your personal assets. The lawsuit if any can only name the LLC and not the person. For instance, if you register the property under the name of your LLC then this will be the only asset that would be at stake if a tenant or association were to sue you. However, if your intention is not to rent the property and use it as a residential instead, buying the property through the LLC might not be the best idea for you.

Tax – LLCs allow pass through taxation if adequate under IRS code.

Privacy – If you want to stay anonymous on the records, buying a real property through an LLC will give you some privacy. If an LLC owns real estate under its business name, that’s the name that’s listed on the deed, and LLC members are not disclosed. However, it isn’t impossible for people to figure out who the owners are due to sunshine laws in Florida.

The Cons of Buying a Real Estate Through an LLC

Despite the advantages, buying a real estate under an LLC might not be the right decision for everyone.

Liability – In some cases, you could still be held personally liable even though assets are owned by a business.

Costs – While it is lucrative to set up an LLC, it’s important to know your plan when it comes to cost versus benefits in your state.

Financing – Unless you are paying in cash, financing is not easy. If it is a newly formed LLC – which is true in most cases, getting a mortgage financed can be extremely challenging. Conforming mortgages can not be made to entity, they must be made to individuals.

Transfer – It is possible to transfer an individually owned real property to an LLC. However, you need to be careful here on a particular clause– if your mortgage has a “due on sale” clause this transfer will trigger the clause as soon as you are no longer the official owner of the property and your entire mortgage becomes due right away.

In Conclusion

Once you have determined your purpose, if you are considering purchasing real estate with an LLC, you should understand its implications. You need to consult an attorney with experience in your state, to ensure smooth operation and a hassle-free purchasing process.

If you are concerned whether an LLC would be favorable for you, need additional information or if you have decided to buy your property through your existing LLC feel free to contact us at to schedule a consultation so that we can guide you accordingly.

 

Disclaimer: the information provided on this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this post may not constitute the most up-to-date legal or other information.  Readers should contact their attorney to obtain advice with respect to any particular legal matter.  No reader, user, or browser of this site should act or refrain from acting on the basis of information on this post without first seeking legal advice from counsel in the relevant jurisdiction.  Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this post do not create an attorney-client relationship between the reader, user, or browser and Aktas Law, P.A.  All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed.  The content on this posting is provided “as is;” no representations are made that the content is error-free.

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What Circumstances Allow for a Juvenile to Be Tried as an Adult in Florida? https://aktaslaw.com/what-circumstances-allow-for-a-juvenile-to-be-tried-as-an-adult-in-florida/ https://aktaslaw.com/what-circumstances-allow-for-a-juvenile-to-be-tried-as-an-adult-in-florida/#respond Fri, 24 Apr 2020 21:02:37 +0000 https://aktaslaw.com/?p=459 Unfortunately, crimes do take place. While it is understood that there are consequences for involvement in crime, the punishment should not be more than what is fair. When this happens, it is important to ensure that those who commit crimes are not unfairly punished, especially if they are minors. There are instances when a juvenile […]

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teenager got arrestedUnfortunately, crimes do take place. While it is understood that there are consequences for involvement in crime, the punishment should not be more than what is fair. When this happens, it is important to ensure that those who commit crimes are not unfairly punished, especially if they are minors. There are instances when a juvenile can be tried as an adult in court which can have a direct impact on sentencing. For this reason, it is critical to have a lawyer on your side. Miami criminal attorneys represent clients who have been convicted of a crime by making sure they are not given consequences that exceed the incident.

When Juveniles Are Tried As Adults

At Aktas Law, we understand the need for strong defense of minors that have been involved in a situation where they can be treated as if they are an adult. It is important to know the types of crimes that can lead a judge to consider giving an extended sentence. These crimes include many forms of:

Assault
Battery
Robbery
Burglary
Grand Theft Auto
Homicide

A minor as young as 14 can be tried as an adult in these instances which is known as a discretional direct file. A minor ages 16 or 17 being charged is a mandatory direct file.

Miami criminal attorneys help juveniles by explaining the situation to them and protecting their rights. A lawyer can provide the representation needed to have the sentence decreased or to show how being tried as an adult in certain cases is excessive. An attorney will be present for the duration of the case and can offer the legal support needed throughout the entire process.

If you or someone you know is at risk of being tried as an adult for a crime, contact Aktas Law. Our professionals have years of experience and can help you. Contact our office for a consultation.

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Is My Criminal Record Public in Florida? https://aktaslaw.com/is-my-criminal-record-public-in-florida/ https://aktaslaw.com/is-my-criminal-record-public-in-florida/#respond Fri, 10 Apr 2020 20:54:36 +0000 https://aktaslaw.com/?p=457 Every state has a record system that logs criminal information. These details are public and can be accessed by prospective employers, neighbors, and any other person who may want to know more about the people who have committed crimes. In the state of Florida, these records are able to be accessed and contain personal information […]

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criminal recordsEvery state has a record system that logs criminal information. These details are public and can be accessed by prospective employers, neighbors, and any other person who may want to know more about the people who have committed crimes. In the state of Florida, these records are able to be accessed and contain personal information that identifies you and the crime you committed. This can be detrimental to you as you seek to have a fresh start and can create a permanent bad image of you. A Miami criminal defense lawyer can help you explore the options available to change this. We value second chances at Aktas Law and want to help you.

Criminal Public Records

As stated, criminal records are public and contain personal information. The display of these records is standard protocol for states to follow. Though it is common for the information to be available, there is a way to have your records concealed. The process of expungement involves requesting criminal records to be removed entirely. A Miami criminal defense lawyer is needed to initiate the process.

Before asking for an expungement, it must be determined if you are eligible to do so. A Miami criminal defense lawyer will help you determine if you meet the requirements. The request to initiate an expungement involves submitting a petition to the court where the arrest, or conviction, if applicable, took place. Once submitted, a decision will be made if the record will be expunged or not. The petition process is not simple and requires legal knowledge to ensure that all parts are fully completed. An attorney can also answer any requests from the court if they need further information related to the petition.

At Aktas Law, we want to help you as you seek to have a new beginning after having a criminal record. Contact our office to learn how we can assist you in this matter.

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Texting and Driving in Miami: What to Know https://aktaslaw.com/texting-and-driving-in-miami-what-to-know/ https://aktaslaw.com/texting-and-driving-in-miami-what-to-know/#respond Fri, 03 Apr 2020 20:50:51 +0000 https://aktaslaw.com/?p=455 In Miami and the rest of the state of Florida, texting and driving is against the law. It’s important to understand what this means in the event that you are pulled over by a law enforcement officer. Per Florida’s law, there is a ban on texting using a cell phone while behind the wheel of […]

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man texting while drivingIn Miami and the rest of the state of Florida, texting and driving is against the law. It’s important to understand what this means in the event that you are pulled over by a law enforcement officer.

Per Florida’s law, there is a ban on texting using a cell phone while behind the wheel of a moving vehicle. The law makes it illegal to operate a vehicle while typing on a cell phone or other mobile device for the purpose of communications that are not phone call related. This involves text messaging, chats, email and instant messaging.

Overall, the law was put in place to create a safer environment in Miami and Florida as a whole. It was instituted to prevent car accidents to protect drivers, passengers, pedestrians and bicyclists. If a driver disregards the law and uses a mobile device to send messages while driving and gets into a crash, they are liable for compensating any and all injured victims. Compensation can include medical bills, ongoing expenses, lost wages, loss of earning capacity, property damage, scarring and disfigurement and pain and suffering.

According to the National Highway Traffic Safety Administration or NHTSA, around 2.2 percent of drivers used mobile devices for text messaging purposes back in 2015. Although there have been laws created to prohibit these behaviors, people continue to use cell phones in this manner while driving, putting countless others at risk.

Certain problems arise from texting while driving that include three types of distraction. According to the Centers for Disease Control and Prevention, they include the following:

• Cognitive: Drivers can be cognitively distracted while texting as their minds are on something other than the road
• Manual: If a driver’s hands are off the steering wheel, it poses manual distraction
• Visual: Visual distraction involves the driver’s eyes being off the wheel even for mere seconds

If you live in Miami and have been pulled over for texting while driving, you need Aktas Law on your side. The Miami criminal defense attorneys will strive to protect your rights every step of the way. Contact Aktas Law immediately to discuss your case with experienced Miami criminal defense attorneys.

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