Who to consult on an LLC for multiple properties

Question

Basit Siddiqi · Answer

@Brian GonsalvesYou first want to have a conversation with your parents to see if they are on the same game plan of transfering title to you.The downside of transfering title to you now is that you get transfer basis and don't get a step-up at a later point.Are your parents expecting the income from the rentals to fund their retirement?Do they own it free and clear - If yes, there might be an opportunity to do seller financed so you own the property and they get interest(which they can use into their retirement)If the LLC is owned by you and your sister, the LLC will be required to file a partnership return(Form 1065)Best of luck!

Brian Gonsalves · Answer

That does. Thank you for your help

Todd Rasmussen · Answer

@Brian Gonsalves

Sounds like you are creating LOTS of tax issues. Call a CPA and also, maybe pump the breaks on changing ownership and llc's. Why not see if you are capable and willing to manage your parents portfolio before you make it your business? LLC's and ownership changes and all that can come in time.

"This has been working for years, change everything" is making me nervous for you.

I have a great CPA in the area if you PM me I'd be happy to refer you.

Bruce Woodruff · Answer

Both.

Chris Davidson · Answer

@Brian Gonsalves in short talk to a CPA about how it will effect your taxes, and a lawyer on how to handle the transition and setup from your parents to an llc that you and your sister would be running along with how that is going to effect child support (this might be more than one lawyer family lawyers sometimes don't do business law).

Side note borrowing on properties that are under a llc can be more difficult than an individual that is looking to borrow against. So I would add a banker/lender to the mix and make sure that if you do all of this you will still be able to obtain the financing you are looking for.

Hope that helps and congrats on the rapid expansion