Taking cash out of Single Fam which is in an LLC

[Celia P.]

I 'm thinking of pulling cash out of a SFR which i own full and clear (no debt) in order to use as a down payment for another purchase. However, the SFR is in an LLC and i am told that the house would need to be under my name and no longer the LLC. How risky is that , and does that seem like a good idea?

[Matthew Kreitzer]

The answer to your question would depend on a whole host of facts not available, and only a licensed attorney in your state should be the one answering. That said, some general principles one should consider when doing this, is that it may open your corporation up to liability if you are transferring assets around all "willy nilly". These kinds of transfers also typically will spark tax consequences because it is a transfer, and both the corporation and yourself will have to face tax repercussions.

The answer should be thoroughly discussed with a licensed, local attorney.