Seeking LLC Guidance; Long Time Realtor, First Time Investor in Michigan

[Fareen E.]

Good morning! Great to be here.

Just obtained my first LTR and did a mild flip to improve some cosmetics. Before I advertise it I need to clear up some confusion so I can start on the right path. I realize the LLC is for liability protection but my goal is to retire early and I want to phase into REI being my primary source of income.

That said, do I just QCD the property over to my single-member LLC and then make owner's draws? Will that count as my personal income?

I know I will have to report the LLC's profits but I'm confused as to how to handle the draws with respect to the IRS. How does a trust fit into all of this (if I wanted to get things into a trust for my children)?

Thank you for any insight you’re willing to share!

Fareen