Selling/Buying a House Under LLC Using 1031

[Soh Tanaka]

Hello All,

I am considering selling a property that is owned by LLC (IL LLC), and buy another one in another state. The problem is, I don't want that particular LLC to buy a property in another state. But my understanding is if IL LLC sells a house, I have to use the same entity (IL LLC) to buy another one, which I don't want to.

My solution to this is to dissolve the LLC and transfer the deed to myself before selling the property, sell the house and buy another one in another state.  

Do you see any issue with this?

Thanks!