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Buying business real estate? The legal entity you choose could make a big difference in your tax bill.

By Joan Szabo

Opinions expressed by Entrepreneur contributors are their own.

While location will always be important when buying real estate,tax experts say don't neglect to carefully consider the type ofbusiness entity you select to own that property. That'sright-for business real estate, you should choose a businessentity that will help you save on taxes.

It's almost never a good idea, for example, to use acorporation for the real estate you expect to own in your businessbecause it will likely cost you plenty in taxes, says MauryGolbert, a partner with the New York City accounting and advisoryfirm Berdon LLP. As you know, with a corporation, earningsare subject to double taxation. First, the corporation pays taxeson income, and then after-tax income is taxed again when it'sdistributed to shareholders in the form of dividends. Thecorporation must also pay state and city taxes in manyjurisdictions on income from rental real estate.

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