Legal Question in Real Estate Law in California
How do I transfer title of a rental property I purchased as an individual in California into a California LLC I just set up through Legal Zoom?
1 Answer from Attorneys
I don't know anything about LegalZoom, but my guess is that they gave you next-to-zero advice about how to capitalize and operate your new LLC. I would therefore suggest that you buy and at least skim one of the several paperback self-help law books on how to form and operate an LLC. Focus in particular on how to write an operating agreement for a single-member LLC and how to capitalize your LLC, i.e., investing cash in exchange for your membership interest -- most of which cash will flow right back to you when you sell the rental property to the LLC. You will also need to give some consideration to keeping the resale of the rental property (from you to the LLC) tax neutral. If you don't already have some tax savvy, I'd recommend establishing a consulting relationship with a CPA near you.