Always Buy Property in a Corporation

You will want to take title of the property in the name of a Corporation. The name can be any name not currently in use and it does not have to be in Spanish.  Actually, it doesn’t even have to be a real name.

Types of Corporations:

• The standard Sociedad Anonima (S.A.) This is the most common but may not be the best for you.  The standard S.A. requires four officers of the corporation and unless you have family or three trustworthy friends you might be looking for names. The S.A. provides less protection over fraudulent transfers but provides more anonymity of ownership.
• The Sociedad Limitada (LLC). This is less common (probably because it is newer) and it only requires two people to start the corporation and later one can be removed.  The other advantage is that the LLC offers greater protection against illegal transfer.

Instant Corporations:

• Shelf Corporations These are corporations that have been set up in advance to sell to a client. Since these have already been established they offer instant gratification but usually cost 5 to 10 times as much as a new corporation.
• Used Corporations These are corporations that were formed for someone and that person now wishes to sell it. Treat Used Corporations like a used gun.  Never buy one unless you know the full background. They can have unrecorded liabilities for wages, taxes, damages, loans etc. that you will ultimately be responsible for satisfying.
• Need it fast? - We have an attorney that can have a corporation formed in generally 2 weeks. The standard waiting period is three months.  Yes, there is a bribe that gets paid but if you need a corporation fast, it is well worth it.

Beware if your attorney or any other listed party insists on owning any of the stock. If they won’t budge, move on to another attorney.

We have heard of people being charged up to $1,500 for forming a corporation. That is excessive as the typical rate is $500 or less. We have made special arrangements to have corporations, either an S.A or LLC formed for our clients for generally less than $400.  Write us for more details.