We currently have three properties that we plan on transferring to our LLC.
The problem is, we just filed for our LLC here in Ohio with an effective date of 1-1-2015.
Does that mean I have to wait till the 1st to transfer our properties to the LLC, or can we transfer the properties as soon as the LLC is processed?
Do you own the homes free and clear? If you are only transferring them bc you have been told it will protect you more I would not believe that to strongly. The best thing to protect you would be enough insurance, like an umbrella policy.
I like many have LLC's but they sorta provide no use. There are the yearly renewal fees and then paying taxes and also paying for your CPA to file the taxes.
you feel that LLC do not provide much protection? more of a hassle then worth?
The properties are free and clear of any mortgages.
Fees are very reasonable in Ohio.
Its all a matter of personal opinion ( and how a judge might rule if ever put to the test ).
There is no right or wrong in having one. I think the best benefit is to not let anyone know who owns the home.
So, the original question was regarding if I should or shouldn't do an LLC, but whether or not I could transfer the properties into the LLC before it's effective date.
This is for an LLC we just filed this week and we put the effective date or beginning of business on the first.
We should have the LLC processed in about a week.
I personally wouldn't try to transfer title of any properties to an LLC that is not "in operation". Are you even able to register for a federal EIN yet or not?
I doubt your insurance provider would pay out a claim if something horrible happened between now and then since you won't be able switch/add the LLC as owner since you "effectively" can't act on behalf of an LLC that isn't operational yet.
This is my thoughts on how this works, I have no experience with delayed effective dates. I would personally wait the 3 weeks..
I would wait also, to keep things legitimate. Make sure your Hazard Insurance carrier knows you are doing this, so they can get the LLC insured. The other thing that very few people warn you about, is that your title insurance may be voided when you transfer title to the LLC. Do some research, and talk to your Title Insurance carrier before you prepare the deeds. I'm not a lawyer, so this shouldn't be construed as legal advice.
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