Transfer property to a LLC (2 foreign owners) to avoid FIRPTA?

[Mylene Bel]

Hi BiggerPockets,

My husband and I are foreign owners of a condo in Florida that we want to sell to buy other investment properties.

We didn't form a LLC at the time of buying. Now we're told that we should have in order to avoid FIRPTA (15% withholding for foreign investors) since FIRPTA doesn't apply to a domestic LLC that has multiple members (foreign or domestic).

Is it too late to create the LLC now and then transfer the property into the LLC through a quit claim deed before the sell? Or will it look suspicious to the IRS?

If it's doable will there by any consequences in terms of taxation for us, the LLC owners? As a "partnership" will each owner be taxed on future rental income? Or as spouses can we elect to file as a qualified joint venture after the sell?

The idea is to first avoid FIRPTA by being treated as partnership but then later become a "joint venture" for long term taxation purposes. 

Thanks for your help!