: Because a company is a separate legal entity, your personal assets (like your family home) are generally shielded if the company faces legal action or financial trouble.
: Unlike individuals who get a 50% discount on Capital Gains Tax (CGT) for assets held over 12 months, companies usually pay tax on the full capital gain . how to buy a house with an llc
: If the property is negatively geared, the losses stay within the company and cannot be used to reduce your personal taxable income. : Because a company is a separate legal
: It is often simpler to transfer ownership of a company (via shares) to family members than to transfer a physical property title. Key Drawbacks and Costs : It is often simpler to transfer ownership
: Companies can keep after-tax profits within the entity to use as deposits for future property purchases, helping to scale a portfolio faster.
: You cannot claim the main residence exemption if you live in the house; the company will still be liable for CGT.
: You will face ongoing costs for ASIC registration , annual reviews, and complex company tax returns. Steps to Purchase Under a Company Choosing the Right Entity When Purchasing Property in NSW