Transferring house into an llc in illinois

[Joe Taylor]

I was listening to a book tonight and it was talking about how transferring title to a LLC could be a taxable event in certain situations. Our situation seemed like it might fit the criteria for a taxable event. It seemed like it may be state specific. Here is the situation there are 3 members of of our LLC but only 2 of us took out the loan on the property. Since the house is in 2 of our names but then will be transferred to an entity with 3 of us in it would that create a taxable event? This property is in Illinois.