Legal Question in Business Law in California

Re: asset transfer to an LLC

Just you are saying that you want to transfer real property from being personal property into the LLC tells me how no one can properly answer your question other than by saying recording the transfer. Wets put it this way why don't you just go please hire an attorney who is an expert in real property transactions and can help you make sure that what you ar good law of him select off e going to do is done properly, expertly so that everything is done for tax purposes so you don't screwup yourself, the title to the property and other aspects of the transaction, how small they really are.I have practiced law in the San Francisco Bay area for over 30 years and feel quite confident in terms of my familiarity with your problem. If you wish to contact me to set up an appointment please call me at 925-945 -- 6000.

Re: asset transfer to an LLC

A grant or quit claim deed should do the trick. You should document the transaction, especially if you wish to take advantage of any tax consequences.

Re: asset transfer to an LLC

An LLC is a statutory "person" and if properly set up and run, the LLC can receive and hold real property just like any other "person," whether artificial (LLCs, corporations) or natural (human).

So, the current owner(s) of the real property would simply execute a deed (grant or quitclaim) naming the LLC as the grantee. The LLC would then record its deed.

Caution! Consider the following before carrying out this transaction:

1. If the real property is subject to a loan, be sure the lender or lender's trustee agrees to the transfer and that it doesn't trigger a "due on sale" clause.

2. Investigate the effects of the proposed transfer on the property tax assessment -- the property will be re-appraised -- and on the tax liability of the seller(s) (capital gains?).

3. The deed must be properly drawn, with (for example) an accurate legal description of the property and must be notarized to be recordable.

4. Once the deed is signed and "delivered" to the LLC (i.e., placed in the hands of its manager), the transfer of ownership takes effect and thereafter only the LLC (through its duly-appointed managers) can deal with the property or un-do the transfer of ownership.

5. If the transfer is being done for an improper purpose, such as to try to shield assets from creditors, the transaction can be canceled as a result of a creditor lawsuit under the Uniform Fraudulent Transfer Act or some similar law.