Transferring existing rental property to new LLC (mortgage, lawyer, transaction)
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In addition to the change from personal to LLC, make sure you properly change any and all other items into that LLC for the rental. Have any bank account that hold the security deposits changed to the LLC and properly notify tenats if required by law. Notify all tenants that the new landlord is the LLC not you personally. Change any registrations or permiits over to the LLC. basicall, make sure that besides establishing the LLC to own the property, everything now point to the LLC.
I want to form a new LLC and transfer our rental property into that LLC to separate it from our personal assets.
Do I need a lawyer for this?
This is exactly the kind of thing you should see a lawyer about. It's easy work for a lawyer so it shouldn't cost you too much and it's something you want to do once and do it correctly.
Do you have a mortgage on the property? If so the bank won't be too happy about what you're doing as it removes the personal guarantee to pay back the note.
I can't imagine a situation where it wouldn't be. I don't understand why people are so desperate to save a few hundred dollars in a situation like this and risk God knows how much in extra taxes and penalties.
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