C O R P O R A T E F O R M A T I O N
F O R
R E A L E S T A T E O W N E R S H I P

PROTECT YOUR REAL ESTATE THROUGH FORMING A CORPORATION

Forming a corporation to own real estate instead of owning it under your personal name offers several benefits, such as:

Protection of the property from personal liability.
Tax Benefits: since corporations may have access to various tax advantages that individuals do not. For example, certain expenses related to property ownership, such as maintenance, repairs, and depreciation, can often be deducted from taxable income. Additionally, the corporate tax rate may be lower than individual tax rates in the Philippines.
Easier Transfer of Ownership: Ownership interest in a corporation can be more easily transferred than real estate held in an individual's name. Shares of the corporation can be sold or transferred to others without the need for lengthy property transfer processes.
Credibility and Professionalism: Holding real estate in a corporate structure can enhance credibility with lenders, partners, and clients. It may give the impression of a more professional management structure and can be beneficial in securing financing or partnerships.
Estate Planning and Succession: Owning real estate through a corporation can simplify estate planning. Shares of the corporation can be passed to heirs without the need to transfer the property directly, potentially avoiding probate and making the process more efficient.
Pooling Resources: A corporation can allow multiple investors to pool their resources to purchase and manage real estate, making it easier to acquire larger properties or portfolios than individual investors might manage alone.
Separate Business Operations: If you're using the property for rental or commercial purposes, forming a corporation allows you to separate your real estate operations from personal finances, making it easier to manage business finances and track expenses related to the property.