Bob Gauvreau explains that legal suffixes like Inc. and Ltd. are mostly aesthetic choices. The only real requirement is a descriptive element in your name. Numbered companies are popular in real estate for privacy.
So you're setting up a new corporation for yourself, your business, your real estate investments, whatever that is, and you're confused at how to name it, whether it should be a numbered company, whether it should include Corp. Corporation, Inc. Incorporated Ltd. Ltd. What does any of that mean and what are the differences? So let me simplify this for everybody. It's really a matter of personal preference. The legal entity just, just needs to have a descriptive factor. You have to pick one, but you essentially choose the one aesthetically that feels the best for you. For example, we have a numbered company. A lot of people use numbered companies when they're investing in real estate. Why? So that people can't necessarily associate that numbered company to an individual who's accumulating all of these properties. Right. It gives some element of privacy associated with it. Although if someone's digging deep enough, they're going to find out who owns those properties anyway. But as a numbered company, I just found out that LTD is the number one choice for a numbered company. Now I typically choose Inc Just because aesthetically it feels good. But there's a really great example of the fact that it doesn't matter what you decide to choose. If you want a numbered company, that's how you go about it. You just choose Incorporated, Ltd. Ltd. Corp. Corporation, whichever feels the best for you. Now, for me, I like personality to come into corporations. I've got a of lot holding company that's called RJJS Investments Inc. Some people may say, well what the hell is that? That doesn't make sense. It's about me right when I'm creating this corporation. It's got personality. For me, RJJS is just the first initials of everyone in my, my wife and I and our two kids. So RJJS is, is that for me? So it actually fills a bit of a side purpose where it's like this is our identity of what I want to create for my family. So it just gives me a little bit more personality in there. You can totally choose whatever you want. It has to have a descriptive factor, whether it's holdings, whether it's the active business that you're involved in. It's got to have a descriptive factor and then a legal element at the end. Again, choose which one fits you. Just want you to know that there's really no distinction, there's no benefits to having any separate legal entity. It's your personal choice, your personal preference. Choose which you like best and start moving forward.
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