Business and entity in Riverside
Riverside runs on professional services, health care, education, and county government, and a large share of local owners occupy the building they work in.
What this looks like in Riverside
Owning the building your practice operates from is usually sensible. Owning it inside the same entity as the practice usually is not, because appreciated property is difficult and expensive to separate later.
For professional practices specifically, the entity question also interacts with how income is characterised and what is left to plan with at year end.
What gets examined
- Whether the operating business and the real property sit in the same entity
- Rent set between related entities, and whether it is supportable
- How many California entities are being carried, each with its own annual minimum franchise tax
Common questions
- I own the building my Riverside practice works out of. Should it be in the same LLC?
- Generally the property and the operating business are better held separately. The reason is what happens later: property that has appreciated inside an operating entity is costly to move out, and in an S corporation a distribution of that property is generally treated as a sale at fair market value. Separating them at the outset costs very little.
- Do you meet with clients in Riverside in person?
- Yes. The office is in Riverside and we recommend meeting there in person for a first consultation. If that is not practical, we can meet by video on Zoom, Teams, or Google Meet.
How business and entity works in full|Everything in Riverside
Start with a conversation
Tell us what you are working with and we will tell you whether it is something we handle.