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That’s a personal choice and I’d recommend you consult with your lawyer and accountant together to determine what fits for you. I have done this in recent months to make sure my current structures still work. I strive for simplicity in all of my systems. Our holding corporation will have 3 types of shares: Class A and B common voting shares, which my wife and I own; then, we have Class C common non-voting shares that our money partners own. This is a model that works for me, my JV partners, and from a corporate, tax and bookkeeping point of view.

There is no standard format for how to set up a corporate structure for a Multi-Family Joint Venture (yes, we all wish there was an easy black and white template). It all depends on what each partner needs for their tax planning and what roles each partner is going to play in the partnership. Don’t just rely on a lawyer’s advice on this, make sure you discuss it with your real estate experienced Tax Accountant as well (such as George Dube: here is his web-site: http://dubecuttini.com).