How to put property in LLCs name?

8 Replies

Ive asked this question a bunch of times, and get very different answers (from people I meet). We both know when we buy our first (or first couple) properties, they will have to be in our names. My question is, how do I get it into the LLCs name after the fact? I want it there for tax and liability benefits. I have heard a lot about quit deeding, and do not want to go that route.

We want the business to show a profit for the next few years so we can eventually take out a loan in the LLCs name.

Moving in into a LLC while the loan is in your name will do virtually nothing for you as far as liability,,your name is still attached and it sounds like your managing it,,,

So if its in the LLCs name, and the mortgage is in my name, and someone gets hurt on my property, that wont protect us?

You didnt mention anything about the tax benefits, or that we eventually want to take out a loan in the business name.

After a previous post I made the other day, We are 95% certain that we'll have a PM manage it.

Probably through a gift deed

Liability is not my main concern, just one of them. I want the tax benefits and the ability to take out loans in the LLC name shortly down the road.

It is wise to change the properties titles to LLCs name and any real estate lawyer can do that. Your name does not appear in public record this way. Banks can make the loan due upon this change but that's very rare. LLC gives you liability protection but taxes are still transferred on to you on your personal returns.

The tax benefit you will receive is a lower net income ..( since you will probably have an extra expense for annual llc fees ) :-).. But like it was said above ..all of your income goes on a k-1 .. Then it gets reported on your personal return . So there's no tax benefit ..if you are referring to depreciation you get that either way..

Also in terms of transferring ..who is making your llc? If it's a lawyer have them do it when they make it

Otherwise ..from my understanding ..different states use different methods ..I believe we did a quitclaim ..but let the lawyer handle it

Good luck

There is no difference tax wise between holding your rental in a single member LLC as opposed to holding one in your own name. A single member LLC is a disregarded entity for tax purposes and you don't lose any tax benefits by holding it in your own name.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you