LLC member swapping and repercussions?
Hi friends, I have a question for any lawyers out there or anyone who may be familiar with this. This is concerning a property we have under contract in Minnesota.
Is there is a way to bring the capital partner on the LLC and give them recourse but not equity? They would basically be an internal lender. After we pay them back, we would remove them from the LLC.
Also, At what point does changing ownership inside an LLC trigger a "sale?" and sales tax due. From my understanding, you can't just swap out all the members of the LLC that holds real estate without triggering a sale. Is it true that when you change ownership in an LLC it can trigger a "do on sale" tax situation?