Transferring property in Arizona LLC to a Minnesota LLC

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Transferring property in Arizona LLC to a Minnesota LLC

Connie K.
Investor · AZ · Member since 2016 · 10 posts · 3 votes

Has anyone transferred a rental from a LLc in one state to an LLC in another state? In my case I have a house in Minn owned as a foreign entity in an Ariz LLC . I want to transfer it to a Minnesota multi-member LLC. These LLCs are both owned by the same two people, so there would be no money exchanged. Just wondering if a quit claim will do it? Thank you!

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y

@Connie K.

Why? This makes zero sense - sorry to come across as a jerk but this makes absolutely no sense and where did you get the advice to do this?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Connie K.

    Why? This makes zero sense - sorry to come across as a jerk but this makes absolutely no sense and where did you get the advice to do this?

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  • Sean MacDonald
    Lender · Phoenix, AZ · Member since 2024 · 32 posts · 17 votes
    2y
    Quote from @Connie K.:

    Has anyone transferred a rental from a LLc in one state to an LLC in another state? In my case I have a house in Minn owned as a foreign entity in an Ariz LLC . I want to transfer it to a Minnesota multi-member LLC. These LLCs are both owned by the same two people, so there would be no money exchanged. Just wondering if a quit claim will do it? Thank you!


    I am also curious to know what the motivation is but, Yes. A quitclaim deed should work for transferring the property from the Arizona LLC to the Minnesota LLC, especially since both LLCs are owned by the same individuals and no money is exchanged. Since it's essentially a change in the holding entity, not a sale, a quitclaim should be sufficient. I would check with a real estate attorney in both Arizona and Minnesota to make sure you're compliant with state specific requirements and to handle any potential tax implications.

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  • Connie K.
    OP
    Investor · AZ · Member since 2016 · 10 posts · 3 votes
    2y

    I have several properties and several LLCS in both states and just tidying it up on the advice of our accountant. 

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    Tidying up? Sounds like code word for increasing their billables in 2024 Q4.  I would love to hear a more detailed explanation on why your accountant recommends this if you are able to share with us the more precise reasoning. In most municipalities you will have to pay transfer taxes equal to the assessed value even if transferred for a nominal amount plus deed prep and recording fees. Is there a loan on this real estate? This could mean refinancing the property since the record owner has changed as well.

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  • Connie K.
    OP
    Investor · AZ · Member since 2016 · 10 posts · 3 votes
    2y

    Actually, it is to my advantage to simplify, making ownership of my assets easier to file at tax time.  

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