Transferring rental properties to LLC

[Kinju Dudhia]

I have bought 2 rental properties in Michigan with 3 other partners. We formed LLC using zen business online. I am trying to transfer the deeds of the properties to the LLC with help of a lawyer. He wants me to get an accountant to make sure LLC is set up correctly.

His other question is as follows: "What is the consideration or price for the transfer of these two properties to the LLC? $1.00?"

I am quite confused now about the process. Any advice?

[Ashish Acharya]

Originally posted by @Kinju Dudhia:

I have bought 2 rental properties in Michigan with 3 other partners. We formed LLC using zen business online. I am trying to transfer the deeds of the properties to the LLC with help of a lawyer. He wants me to get an accountant to make sure LLC is set up correctly.

His other question is as follows: "What is the consideration or price for the transfer of these two properties to the LLC? $1.00?"

I am quite confused now about the process. Any advice?

There is a lot going on.

Before you are going to transfer the property, you already have a general partner created. Basically you are dissolving the old partnership, and contributed property to new partnership. 

If all the partners were not on the title, it creates more capital account issue that needs to be booked correctly. 

Also loan has be assumed by the partnership and that is deemed distribution to the partner and capital account needs to adjusted. 

That is just a surface, you need to talk to your tax advisor.