1031: single private owner --> LLC assistance

[Aaron Kaplan]

HELLO BP land: there must be many many folks whom have done 1031s here and many attorneys and CPAs but I wanted to know...

we have a SFR title is in wifes tax ID (we live in WA but house is in CA [where we used to live]).

we plan to 1031 into a larger MFR property. That property for obvious reasons (liablity protection/ taxes etc.) we want in a LLC.

if wife's tax ID is on the downleg (the SFR) and the LLC would have her as at least 1 of the members or managers of the LLC (say future property is in WA or AZ then it would be WA or AZ LLC) is that good to go ?

Ideally want to have both wife and I as managers of the future LLC (the upleg)... if that;s the case do we both need to be on title on the downleg (the SFR)? in which case i presume I quit claim deed to get me on the title w wife?

do i have to put the property into a LLC 1st and THEN be able to sell ? (so its same LLC entity prior to selling and keep the same entity for the upleg)?

I dont want to create a CA LLC at this point since we are just about to sell and FTB fees etc not likely worth it but we must have LLC for future apt building purchase.

I wonder how others' have done this as I suspect this isnt that infrequent (prior personal residence--turned rental then 1031 that rental into some future rental building)

thanks in advance

[Mark H. Porter]

Need to have the same SSN on the sell as well as the buy. Why not just wait until after the transaction to do the LLC conversion. Whether or not you need an LLC is a different question unless you have a lot of assets. Most just get umbrella insurance.