Transfer Of Rental Property To LLC
My partner and I are considering an LLC for rental properties, to replace a partnership. Would we have to pay a transfer tax to put the properties into the LLC? If the names on the titles of the proerties differ from those in the LLC does this cause a problem? The properties are in PA.
TIA
raasay
Quit cliam Deed it. My logic is if you know you have a godd title, and the quit claim is rather silent, why not?
You already know when you sell it will be clear Title.
And since "Pass Throuhg" you and your partner will still enjoy the same benefits. (Tax/Income) and have better personal libility protection.
Good LLC ing
Joel
I posted a reply to a similar question (which I think you posted as well). The easy answer is to ask your title agent/attorney. A good one will know what will work in your jurisdiction.
It is perfectly legal IF structured properly.
Just make sure your entities are seperate. The building owner is ABC LLC. The tenant is DEF LLC. Have the proper paperwork (lease, etc) in place. Do comps on sq. ft. rental office space so you are in line with the market. Now you not only get the tax right offs as the property owner but can also right off the lease rent as business expense. I repeat, document, paperwork, structure properly. Yes, if done correctly it is very legal and very profitable.
Good Luck
personally I like to do it w/ an attorney the 1st time.
In general the operating agreements are much more through.