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
Top luxurious hotel suites for business travelers For many people, you can't put a price on comfort. More
Million-dollar startups: These firms scored big sales their first year Their first year in business, these companies generated $1 million in sales. More
The 10 best states for retirees It might be worth moving to a new place to find your dream retirement home. Check out these 10 states. More
Sponsors