Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 3 years ago on . Most recent reply

User Stats

47
Posts
18
Votes
James Fraundorf
  • Investor
  • Seattle, WA
18
Votes |
47
Posts

LLC member swapping and repercussions?

James Fraundorf
  • Investor
  • Seattle, WA
Posted

Hi friends, I have a question for any lawyers out there or anyone who may be familiar with this. This is concerning a property we have under contract in Minnesota.
Is there is a way to bring the capital partner on the LLC and give them recourse but not equity? They would basically be an internal lender. After we pay them back, we would remove them from the LLC.

Also, At what point does changing ownership inside an LLC trigger a "sale?" and sales tax due. From my understanding, you can't just swap out all the members of the LLC that holds real estate without triggering a sale. Is it true that when you change ownership in an LLC it can trigger a "do on sale" tax situation?

Loading replies...