Transfer property in my name to a Texas LLC

[Anthonie B.]

I have bought and closed on a rental property held in my name in the state of Texas.

I now want to transfer the property to a Texas LLC for protection. The Texas LLC will have a Resident and Non-resident alien (foreign) member each owning 50/50 of the LLC with the resident being the manager of the LLC. How do I do this? I have a note on the property, do I need the banks permission?

Thanks

[Jessica Zolotorofe]

You should get the bank's permission if there is a "due on sale" clause in your loan or they can call the loan as soon as they find out you transferred title, which is a mess. Problem is they may not like an entity borrower. I would certainly see what they say instead of gambling that they don't find out, but it's a tough call.

As far as how to form it, you can probably do it yourself on the website for the state of Texas, but the operating agreement should DEFINITELY be done by an attorney if there is more than one member and especially if it's not husband and wife.