LLC vs Tenancy in Common

[Tyler Brown]

My business partner and I are under contract for a multifamily property. He is putting his half of the downpayment from funds from a 1031 exchange. He was told by the 1031 agent that we cannot form an LLC for the first year and must instead proceed in a Tenants in Common agreement for the first year and then may transfer into an LLC. Has anyone else heard this? Neither our lawyer nor accountant has heard similar, and I wasn't able to find this information on the forums. TIA