Question: 3 companies coming together to buy a warehouse? How would 3 separate companies come together to buy a warehouse? We have a chance to buy a property 3x's the size my company needs. We have a relationship with 2 other companies wanting to purchase a warehouse. Would the 3 of us need to make a separate company to purchase the warehouse? and the orginal 3 companies pay rent to the newly formed company ? \n\nthanks

Answer: An ideal situation would be to have have seperate corporation formed (NewCo) where the 3 original companies have exactly 1/3 ownership.  The 3 companies then sign leases with NewCo for the square footage they need and pay based on the lease.  From a tax standpoint, NewCo would be losing money because of depreciation, and the 3 amigo's would take the lease payment as an expense.\n\nTax deferral at it's best!\n\nOf course from the corp standpoint, make sure that each company own's 1/3 and it's board has 3 seats, one from each.  The best form might be a LLP.   A taxman or lawman can help decide the best legal form.
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