My wife and I are just now in process setting up our LLC. However, over the last two years we purchased two investment properties which we rent out.
Is it worth the bother to transfer title from our names (currently) on those properties into the name of the new LLC? Are there any tax advantages, litigation protections that would make it worthwhile?
Since it’s already in our names, do we have to go through a title company to make the change?? We’re not sure whether to just leave things as they are or move them over… any help would be great.
You do not need a title company to transfer the deed to an LLC. All you need is a deed from you and your wife to the LLC and that is it. The transfer may offer some liability as any one suing you would not be able to get the property. They could sue the LLc and get the property but not you personally. Of course some exceptions apply but this is the main reason LLC’s are becoming so popular. You will still probably still remain personally liable for the mortgage or loan. I do not know enough about taxes to know is it will help or not. I do know you can deduct some more expenses with a LLC than personally but that is about all I know.