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byoon

Transfering Title To An Llc

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My girlfriend's family has a rental building under personal name.

 

They want to transfer title to an LLC they just established.

 

The Department of State says there are taxes involved.

Specifically, 100% of the value of the property divided by the number of members equals the amount of the tax involved in the transfer of the property to the LLC.

 

 

Can anyone confirm, deny or elaborate on this? I have never heard this before and was wondering if any of you more experienced LLC users could shed some light on the subject.

 

Thank you

 

Edited,

Sorry, Perhaps this is better placed in the Tax strategies forum, my advance apologies

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Byoon,

Yes, some states require you to pay transfer tax if you transfer title to an LLC or trust. I would call your registration of deeds office to find out what needs to be done and how much it will cost you.

Regards,

Adam

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Byoon,

Yes, some states require you to pay transfer tax if you transfer title to an LLC or trust.  I would call your registration of deeds office to find out what needs to be done and how much it will cost you.

Regards,

Adam

 

 

Adam, can I transfer tittle of my own home to an LLC for legal protection? I have a mortgage on it does that matter? For example, I am considering trasferring to tittle to an offshore LLC because I am paranoid in this lawsuit happy country we live in. I truly am an upstanding citizen that pays their taxes just to afraid of having wha't mine taken away from me. BTW I already incread my personal liability on homeowners. Thanks for yoru assistance.

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It is generally a good idea to hold property in an LLC. They way to move the property into the LLC would be for the individual to sign a deed granting the property from the individual to the LLC. As to the tax issue, it depends. Some states will require you to pay documentary stamp taxes on the transfer. In Florida, if you transfer to an LLC, generally the doc stamps owed are based on the amount of any outstanding mortgage (assuming that the previous individual is the sole member of the LLC). If you own the property free and clear and then tranfer to an LLC, it is a different story and you MAY not have to pay doc stamps. You need to check the laws in your jurisdiction.

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Instead of an offshore LLC, you can simply use a land trust. Name your spouse as the beneficiary.

 

A trust will not provide liability protection. At best it reduces the chance that someone will notice who the beneficial owner is.

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