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Updated over 7 years ago,

User Stats

29
Posts
7
Votes
Ernest Rogers
  • Longs, SC
7
Votes |
29
Posts

My rental property to LLC HELP

Ernest Rogers
  • Longs, SC
Posted

I have read and read, and maybe someone can direct me to. Post similar to my situation. I think its easy and straight forward, however, by reading others situations, it get lost. 

I have home in my name only. I am renting it out with a Rent-to-own contract. Basically he is paying rent until the rent pays off the mortgage. (its too far for me to maintain and have as a HOLD Property) At that time, we will figure out what we need to do to transfer the property to him. 

I keep being told I need an LLC , so I started one. (I want to own numerous properties as rentals soon)

The LLC is owned by only me, it's set as a Sole Proprietor right now, but will apply and set as an S-Corp. (I read its the best for taxation)

I do make $250 profit each month. Tax return last year showed all rent money as income and only depreciation as a relief . Even though income was really only $250 a month. I had to claim $751 as income. This is why I am told to do the LLC. For tax bracket purposes, and debt to income ratio on my personal accounts. lastly to start business credit now to be able to own more properties later. Trying to refi our current home to rid the PMI, so Debt to Income Ratio is a huge reason and the renter suing protection.

So the question is.....setting up the Business Account now , I have the EIN, (I didnt put it as a DBA , should I have ??? (Banker set up a new account under the LLC name and then the account as a DBA property address. ) also my insurance is rental insurance, however they said once I have the LLC setup call them and they change it over to the LLC with a DBA....

I'm confused. Did I miss something ??? How does the property get out of my name, into the LLC ??? I read Quit Claim, others say no. (I spoke with a lender and NO DUE ON CONTRACT would come up) So where do I go from here ?

I found Quit Claim fill in paperwork online for South Carolina... I am confused on how to fill out. I am trying to avoid going to a lawyer, but I may have to at this point...just to get started on the right path. 

any help is appreciated an TIA !

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