Would it make sense to transfer property to an LLC now?

Question

As I understand an LLC provides a convenient asset protection and security.I currently own a multi-family in my name.I am wondering if it makes sense to transfer the property to an LLC.

Thanks

Kenneth Garrett · Answer

@Kumar Gaurav

If your looking for asset protection then an LLC is one option. You need to make sure you don’t commingle funds. Keep your personal funds separated from your business funds. There is less than 1% chance your mortgage company would find out, but you should be aware that it is always a possibility. They could call the loan due, but since you have personally guaranteed it probably will be ok either way. Take a look at Mark Kohler on YouTube. He is a CPA and attorney and has many videos regarding LLC’s.

Kumar Gaurav · Answer

@Chris Seveney

Thanks Chris. I don't currently own an LLC.

I guess opening up an LLC is a low hanging fruit.Subsequent steps transferring property to LLC and refinancing the loan to an llc seem complicated.Looks like I will need a RE attorney and CPA. Is it possible to find someone who specializes in both i.e attorney + CPA?

Thanks

Chris Seveney · Answer

@Kumar Gaurav

It only provides asset protection if the LLC is properly managed.

Other things to consider is what is your personal net worth. If you were to be sued what is there for someone to take?

Also things to consider is if you have a loan, you will need to refinance it to the LLC (having loan in your name and ownership in LLC will pierce the LLC protection like a butter knife through warm butter).

These are questions you should ask your cpa and accountant. Not something anyone can give you a thumbs up or down on here

Would it make sense to transfer property to an LLC now?

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