What You Need to Know About LLCs

SAN DIEGO—CRE has much room for improvement when establishing and managing limited liability companies, law firm Crosbie Gliner Schiffman Southard & Swanson LLP partners Phil Jelsma and Gregory Markow tell GlobeSt.com. The use of LLCs is common among commercial real estate professionals, who frequently use them to hold title to investment properties. Increasingly, LLCs have replaced joint ventures and limited partnerships as development and investment vehicles. However, Jelsma, co-author of the book “The Limited Liability Company,” says members of the real estate industry have much room for improvement when establishing and managing LLCs. In the following interview, Jelsma and Markow, discuss exclusively with GlobeSt.com common errors in creating and operating LLCs, as well how to “bulletproof” LLCs to prevent mistakes and fend off lawsuits. The partners discussed the topic in depth at recent event that was part of CGS3′s ongoing “Building Innovation” seminar series.

GlobeSt.com: What are advantages and disadvantages of an LLC for CRE?