Transferring personal SFH Title to SMLLC

[Joshuam R.]

What is your experience and heads up on doing this?

Do we sell the SFH to our own SMLLC , if so do we sell for county/city appraised value on their records? or market value?

or do we just submit the transfer document and that's that.

I learned about possible transfer tax, that's part two, does this tax truly applies if you are transferring the SFH to your own SMLLC , is not truly changing ownership. (Excluding banks from this topic please, thank you)

Thank you BPeers!

[Jason Marino]

Hi Joshuam,

There are a lot of variables to this situation, but I will try to reply generally to your question. You do not usually need to have an official sale to the LLC if you are going to be the owner of the entity that will own the property. You will make a transfer, usually having a title company or an attorney that creates the Deed. The Deed is State specific and sometimes even County specific. Transfer taxes vary from State to State, but you are accurate in noting that they can be an issue. Another issue is a possible tax reassessment if the County Assessor sees the transfer and believes that it qualifies as a 3rd party transaction. Many of these issues can be avoided using a Land Trust for the transfer, as a transfer to a revocable Trust is not normally treated as taxable.