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This is to protect the buildings from liability through issues with workers. You don't want to be sued by a worker for something and have the buildings on the t

• ckdarby 7y ago
  Would note it financially secures the founders as well. Even if the company removes the founders they're going to be getting that lease payment forever.
• lotsofpulp 7y ago
  It’s also due to being able to take advantage of lower taxes on capital gains, which you can have if you structure the real estate part of the business to have income from “passive activity” versus “business activity”. https://www.irs.gov/businesses/small-businesses-self-employed/passive-activity-losses-real-estate-tax-tips https://www.irs.gov/businesses/small-businesses-self-employe...
  • deleted 7y ago
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