For many people in New Orleans area, Hurricane Katrina flooded their houses and rendered them homeless. The state offers a homestead exemption for residents with new housing arrangements, but these benefits are mutually exclusive of the benefits that come with purchasing a home through a limited liability company, reports nola.com.According to the source, the homeowners are not eligible for the homestead exemption if they purchase their property through an LLC. For that matter, the homestead exemption does not apply to any businesses types.
Still, the source reminds residents that there are benefits to purchasing a home through a corporate entity – similar to the benefits of incorporating a business. There are tax benefits to owning property through an LLC. Additionally, in the instance of future sales, a selling agent’s personal assets will be protected because of the limited liability component of different business entities.
Ultimately, homeowners will have to decide which will benefit them more – the homestead exemption or the tax breaks associated with purchases through corporations.
Regardless of whether it’s the right decision to purchase a permanent residence through a corporate entity, this debate might emphasize to entrepreneurs that there are many benefits associated with incorporating a business. To learn more about how to incorporate a business, prospective owners can visit online incorporation sites.