![]() ![]() ![]() ![]() In other words, you may inadvertently lose your assets by attempting to transfer them to your LLC.įraudulent transfer, voidable transfer, and fraudulent conveyance are all legal terms used when referring to the act of transferring assets in order to avoid or defraud creditors. However, you must watch out for fraudulent transfer laws, as these rules can give creditors the right to seize your assets. This is to ensure that you are aware of any potential tax implications and that all of your bases are covered in terms of asset protection and all documents filed with the county records office. You will need to file an annual tax return for your company, and you may be subject to state and federal taxes on the your LLC generates.Īdditionally, you should consult a tax specialist as well as a lawyer when planning to transfer assets into an LLC. Step 5: Pay State and Federal Taxes for Your LLC How To Transfer A Private Vehicle To An LLC.LLC Asset Protection and Charging Orders.However, you must still seek legal advice from a law firm before proceeding. Make sure you register the quitclaim deed with the county where the property is located. Like with the Quitclaim Deed, it's important that you're certain before proceeding with this step – once it's done, there's no going back. This document will transfer the title on your home, car, or other property to the LLC. Step 4: Complete an Assignment of Property Step 3: Draft an Operating Agreement for Your New LLCĪn operating agreement with your LLC members will describe how the business is organized, including any voting rights or distribution of profits that may exist. One important thing to keep in mind when transferring property to an LLC is that the LLC must be properly formed and registered in the state where the assets are located. You will also need to list the names and addresses of all of the members of the LLC. This document will create your LLC, and in it, you will list the name of your company and the address where it is registered. Step 2: File Articles of Organization with the state You can transfer ownership of stocks, real estate property, artwork, automobiles, and other assets. Not all assets can be transferred to an LLC, and doing so could make accomplishing your other goals more difficult. Steps to Transferring Assets to an LLCĪs long as you have followed all of the steps listed below, your personal property should be protected from lawsuits and other threats: Step 1: Determine if the Property is Eligible for Transfer Furthermore, transferring assets into an LLC is irreversible – once it's done, there's no going back. In addition, there may be some paperwork required in order to complete the transfer.įor example, you may need to file legal documents with the Secretary of State, and you will have to pay a filing fee. The main disadvantage of transferring property into an LLC is that it can be expensive. This means that you will not be forced to pay any damages or other money awarded by the court.Īdditionally, if you own all of the LLC's shares, then the company is considered a "disregarded entity."Ī disregarded entity has no separate existence from its owner, so in this case, there would be no need for an LLC to file its own separate tax return – the owner's tax return would include the LLC's income and expenses. In addition, as stated above, titles to those assets can be transferred to the Limited Liability Company, which can make it more difficult for someone to sue you and try to take possession of your belongings.Īnother advantage of transferring property into an LLC is that it can help you avoid personal liability.įor example, if your LLC is sued, the court may rule that only the LLC is responsible, not you personally. Personal property protection is a major reason to transfer personal assets.įor instance, if you have real estate, car, or other valuable property that would be at risk in the event of a lawsuit, with your personal assets held by an LLC, they cannot be taken from you to pay for any judgment against you. In this article, you will know the advantages, disadvantages, and steps of transferring your property into your LLC. This is because the LLC is its own separate entity, and the assets held by the LLC are not considered to be owned by you. However, if those assets are transferred to an LLC, the court may be unable to touch them. Transferring your assets to a legal entity like an LLC can help shield those assets from seizure or legal action and liability protection. How to Change Registered Agent for an LLC.Best Registered Agent Services Expand / Collapse. ![]()
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