Moving a property from a LLC to an individual

You need an attorney, hourly rate. The filing fees aren't that much.

Conversely, what are the benefits of moving a property (paid off) from an individual to a corporation?
I have an HELOC, would I have to reapply, or can that be transferred over as well?

LLC or corportation (if they have different advantages or disadvantages)

Thanks Kharby2. Do you know if there are any tax implications for such transaction?

You need to be very careful with the tax consequences. Is it a rental property? Have you been depreciating it under the LLC? Besides any potential capital gain on the property, there will be recapture of the depreciation which needs to be reported as ordinary income for the LLC's tax return and flows to the two principals, ie: the two principals will have to pay tax as a result of the transfer. Assuming you live in the city, it is safe to assume a 50% marginal tax rate, and it's best to come up with the money to pay the estimated taxes when the transfer takes place rather than wait till you file the tax return for the year. A lot of things to consider depending on the circumstances, best to speak to a tax accountant before you contact your attorney. Good luck.

BTW, the tax implications will also be different depending on the elections (if any) made by your LLC. LLC can be taxed as a corporation if you have filed Form 8832 for the LLC, if that is the case, the LLC will be paying the taxes due and probably at a lower rate (but watch out for double taxation once at the LLC level and another at the personal level), that's my understanding, again best to speak to a good tax accountant before making a decision.

I am learning something new everyday- i was under the belief that an LLC owned by two members who are husband and wife, is treated like a personal ownership. it is reported on the personal income tax return (passive...) and thus whether it is owned as an LLC or individually is irrelevant.Investment property will be treated the same regardless of the ownership structure (assuming husband and wife are the only two members or owners). It seems from superwoman that my assumptions were wrong and my accountant did not provide the correct advice....otherwise I am confused why would you like to dissolve the LLC.?

Thank you superwoman and realtime for the advice. I will for sure check with a good tax accountant before doing anything else.
The place is a rental property and owner occupied. We paid cash for it and now are trying to re-finance with cash out but banks that I've spoken with don't want to lend on a property in a LLC. They want the property in our names. I don't understand why but that's the message that I've been getting.

LLC stands for Limited Liability Corporation. If the LLC defaults on the loan, your credit remains intact, they cannot seek a deficiency judgment from you, etc.

George- you can refinance the LLC however since this is an investment property, the rates are higher.(true if its is under your name or the LLC). Recent rates for investment under either LLC or personal was 3.7% Try First Republic however it will help if you have personal banker or relationships with the bank. Recently my lawyer dissolve an LLC and the filing fee was about $250. since there was no property attached to the LLC i can not comment on the transferring of the deed under your names. as far as inonada's point, the security for the LLC is the property so the bank will foreclose on the property if the member default on the loan and I suspect the member's credit can be affected.

>LLC stands for Limited Liability Corporation. If the LLC defaults on the loan, your credit remains intact, they cannot seek a deficiency judgment from you, etc.

You are an attorney?

No, I just have a basic understanding of the world. More than that, I have an uncanny ability to run a simple search and click on a top link before making a snide comment:

http://www.ehow.com/facts_7310296_happens-llc-foreclosed-bank_.html

"In an LLC foreclosure, the business credit will be affected, but the personal credit of the stakeholders remains intact. However, if the stakeholders utilized personal credit to purchase the property in question, their personal credit would be affected."

Well, I guess you and Shauna Zamarripa, eHow Contributor, really showed me.

Other articles by Shauna Zamarripa include:
http://www.essortment.com/wasps-near-mulch-wood-164685.html

OK, you explain it to the OP. Why do you think the banks are telling them to put the property in their names?

>Why do you think the banks are telling them to put the property in their names?

I offered no legal advice to the OP. Especially as important as what you are offering.
But I like the framing of the question - if I can't prove the opposite, then what you say must be proven. I remember I served on a criminal jury a number of years ago, and there were no fingerprints. The DA brought in experts to explain some of the reasons why there might not be prints. We acquitted.

So you consider anonymous posts as to possible motivations behind a bank's actions "legal advice". Err, OK.

"they cannot seek a deficiency judgment"

You are right, definitely not intended to be legal advice.

what kind of advice do you provide?

>what kind of advice do you provide?

sober

Why do you spend so much time here?

huntersburg

3 minutes ago

Posts: 10070

columbiacounty

1 minute ago

Posts: 11179

when do you figure you'll pass me?

Is this a question that will be on the PSATs?

refresh your understanding of rule #1

>refresh your understanding of rule #1

This is like meeting Tiger Mom of Columbia County. Oh my!

Advice involves a recommendation of a course of action.

Come on, you can do better than that.

Realtime, the decision/election (to be taxed as a corporation or not) is usually made at the time the new LLC applies for a Federal Tax ID, this is NOT an election that needs to be made every year so maybe that's why you don't recall your accountant asking you every year he does your returns.