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We are a start up DE C-corp located in MD so Im not sure if

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we need a MD Attorney...
We are a start up DE C-corp located in MD so Im not sure if we need a MD Attorney or a DE Attorney.
Scenario: The business was established in June, 2014 and were getting prepared for our year end tax. The business is a design build group and we started our office and showroom out of our primary residence. The show room has displays of interior and exterior design elements which took over the home so now our primary residence has become our business and not our home. We currently live in our vacation home.
Question: How should we or can we legally make our primary home our business and what are the tax implications for doing so? Board of directors of the C-corp own this home, if we sell the home to the business for 1$ and quit claim deed it over to the business or do we just keep the deed in place as is and lease the building (home) to the c-corp) since the home is owned by a director of the C-corp currently would you advise us to have the deed switched to another persons name other than a Director and is this legal?
Maggie
Submitted: 2 years ago.Category: Business Law
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7/14/2015
Business Lawyer: Law Educator, Esq., Attorney replied 2 years ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 121,026
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you sell it and quit claim it to the business for $1, when you sell the home your business could end up paying a pretty heavy capital gains tax. However, you can "sell" the home to the business for market value and you would be able to have the business make the mortgage payments and transfer the home to the name of the business. The corporation is a separate legal entity from the directors and it can buy and sell property or sue and be sued on its own. So the corporation can agree (through a vote in the minutes of the board meeting) to assume the mortgage and buy the property from a director (this way there would be no capital gain tax on you personally for the sale either) and the home can be transferred into the corporation name. The corporation would then have the liability to making payments on the loan to "buy" the house from you and would own the house in the name of the corporation.
You would use an MD attorney to write up the sales/purchase agreement between you and the corporation and sell the house to the corporation, which they could use as their business location.
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