Author Topic: Transferring Property to LLC  (Read 1548 times)

js625

  • 5 O'Clock Shadow
  • *
  • Posts: 13
Transferring Property to LLC
« on: September 08, 2014, 06:35:29 AM »
Hi all, I recently purchased a property out of state.  Initially it looked like we were going to take out a mortgage, but I ultimately decided to purchase the property all cash in the end.  As a result of the late change, I did not form an LLC because I knew the lender would never agree to let a newly-formed company open a line of credit.

To those who have transferred a property to an LLC, would you mind sharing some of the basic steps you went through with a lawyer and the deed etc.  Relative costs also.  Also, any implications for forming the LLC in my home state (New York), and the property being in another state? 

I know there are a lot of opinions on this topic, so I am not looking for any absolutes, just some anecdotes and helpful advice.  Thanks!

kittystache

  • 5 O'Clock Shadow
  • *
  • Posts: 22
Re: Transferring Property to LLC
« Reply #1 on: September 08, 2014, 08:51:00 AM »
I have heard that you need to register a Quit Claim Deed to your LLC.  We are doing the same thing. 

Why would you need a line of credit if you paid all cash?

js625

  • 5 O'Clock Shadow
  • *
  • Posts: 13
Re: Transferring Property to LLC
« Reply #2 on: September 08, 2014, 09:39:04 AM »
I ended up not using a mortgage company, I own the property outright

Bruinguy

  • Stubble
  • **
  • Posts: 141
Re: Transferring Property to LLC
« Reply #3 on: September 08, 2014, 10:54:04 AM »
If you form it in a state other than where the property is, you will probably have to "qualify to do business" in the second state.  Usually that means more fees, filings, and potentially additional state tax returns.  I'd form the LLC in the state where the property is.

Blindsquirrel

  • Pencil Stache
  • ****
  • Posts: 657
  • Age: 1
  • Location: Flyover country
Re: Transferring Property to LLC
« Reply #4 on: September 08, 2014, 08:34:43 PM »
   Call around, in Oh, one doc can do multiple properties, a lawyer that works for a title co did 10 or so in one shot for $250. As in all things, calling around is worth the time.