Category: Formation of Construction Entities

Subscribe to Formation of Construction Entities RSS Feed

Avoiding Development Disasters: Land Inventory and 1031 Exchanges

By Benjamin Spiess and Kevin Pearson on Posted in Accounting, Formation of Construction Entities, Land Use, Mergers & Acquisitions, Risk Management, Tax
The ability to defer taxes through a 1031 Exchange can make or break a real estate transaction.  But federal tax law does not treat all real estate owners equally. Under IRC Section 1031(a)(2), real property held “primarily for sale” in the ordinary course of a trade or business is excluded from Section 1031 and may … Continue Reading

Alter Ego: The $5MM personal danger of neglecting corporate formalities and utilizing substandard building materials

By Andrew Gibson on Posted in Construction Defects, Construction Litigation, Damages Claims, Defects, Developers v. Contractors, Formation of Construction Entities, Owner Insolvency
Many building developers utilize a single purpose entity limited liability company (an “LLC”) to purchase and develop property, such as an apartment complex, a subdivision, or a shopping center. Generally, an LLC’s debts, whether incurred or judicially imposed, belong only to the LLC, not to its members.  However, an LLC’s individual member may be subject … Continue Reading

Design-Build Certification

By Karl Oles on Posted in Construction Contracts, Construction Industry, Design Build Agreements, Formation of Construction Entities, Public Construction Contracting
One should never stop learning, so next week I will attend a three-day seminar presented by the Design-Build Institute of America. If I complete the seminar and pass a test, I will become a Designated Design-Build Professional.  The DBIA has an informative page about certification on its website. In preparation for the seminar, I completed … Continue Reading
LexBlog