Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

FORTUNE Small Business:

Investing options for an LLC

In most places, a company can invest in anything an individual can.

Subscribe to Top Stories
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

house_real_estate_for_sale.03.jpg
Ask FSB
Get small-business intelligence from the experts. Here's a chance for YOU to ask your pressing small-business questions, and FSB editors will help you get answers from the appropriate experts.
Your name:
* Your e-mail address:
* Your city:
* Your state:
* Your daytime phone #:
* Your questions:

(FORTUNE Small Business) -- Dear FSB: We're a new LLC, a consultanting firm. Can a company invest in real estate?

- Robert Jackson Summerville, SC

Dear Robert: Yes.

"Generally, LLCs are not limited in the kinds of investments they are permitted to make," says David S. Sokolow, a senior lecturer at the University of Texas at Austin School of Law whose areas of expertise include corporations and contracts.

"In most states, corporations & LLCs have the same powers as an individual; thus, investing in real estate is fine," he says. Be sure to check the law of the state in which the firm is formed, since that particular state's laws will govern what the firm can and cannot do.

If you formed your LLC from where you're writing, in South Carolina, you're clear to invest in real estate, according to David Jones, an attorney with Tiencken Law Firm in Charleston, who said he "wasn't aware of any statutes preventing LLCs from doing so."

Fort Mill corporate attorney Bayles Mack, of Mack & Mack agrees: "Unless there's something in the corporation's own operating laws which would override the state's statutes, that prevents them from doing so, they're free to invest."  To top of page

Photo Galleries
15 top-paid CEOs The 15 highest-paid corporate chiefs in America took home nearly $700 million last year -- about $47 million apiece on average. Expedia's Dara Khosrowshahi tops the list -- with $95 million in total pay. David Zaslav, who was no. 1 last year moves down to no. 15 this year. More
Driving Bentley's new SUV Spending an afternoon in Bentley's luxurious new $230,000 SUV. More
Best cars for the super-rich The Robb Report has selected these as the best new cars and SUVs for anyone who doesn't have to worry about how much they spend. More
Sponsors