Co-Authored By:
Asked by: Santas Scharffe
business and finance real estate industryCan an LLC be a tenants in common?
A TIC is not a taxable entity. Each co-owner is taxed on their own income. Where an LLC or partnership purchases a property, the individual members do not own a share in the property, but rather a share in the entity. In contrast, tenants in common each own a separate ownership directly in the property.
Beside this, who owns the property in an LLC?
Law §§ 203(d), 202. Since an LLC is a legal person, the property it owns is the property of the LLC, not of the members. The New York LLC Act is clear: “A membership interest in the limited liability company is personal property. A member has no interest in specific property of the limited liability company.” N.Y.
Also know, how do you create a tenancy in common?
A tenancy in common is created through the use of a contract called a “tenancy in common agreement,” the property deed only showing each tenant in common's ownership percentage. Ownership interests in a tenancy in common may be bought and sold like any other investment opportunity.
As Joint Tenants, each co-owner holds an equal interest in the property i.e. you both own it equally. Should one of you pass away, your share automatically passes to the remaining co-owner(s) without the need to obtain Probate. Most married couples tend to hold their property as joint tenants.