All Forum Posts by: Shaun R.

I am an attorney, although I do not specialize in this area of law (asset protection & estate planning). I agree 100% w/ Dave E.  Simply because something is "often done" doesn't mean it is legal or "safe".

The only professional who can competently and definitively advise as to the appropriate legal structure for asset protection is an attorney who practices this type of law.

Here are 2 comprehensive videos from a prominent real estate, estate planning, and tax law attorney which describes most of the issues you are concerned with:

1. How to Structure your LLCs for Real Estate:

2. Due on Sale Clause: 

Hello everyone.  I have real property which is mortgage free and want to transfer into a LLC for asset protection. I am drafting the Operating Agreement and have been doing some research.  However, one thing that I can't seem to find a straight answer on is the proper way to select the tax status of the LLC. I understand that an LLC can elect different tax status: S-Corp, C-Corp, Partnership, or disregarded/pass through entity. 

My question is:  "Do I need to specifically declare which tax status the LLC will be choosing in my actual Operating Agreement? Or is this something that only needs to be done when filing my tax return?"

This is great advice. Very informative video. Thank you.

Interesting info Mike, I appreciate it. I am familiar w/ Olmstead - that makes a single member LLC undesirable for me. I have also considered creating an outside owner/manager LLC in a favorable outside jurisdiction such as WY, NV, or DE.... it appears rather complex/daunting for a number of reasons (one being that it seems I must maintain an office/agent in the state where I create the entity/LLC). Any recommendations on a professional with whom I can discuss these intricacies in more detail...?

Also, we have lived in the house for 2 of the last 5 yrs, and would be able to take advantage of the $500K Homestead exclusion. I discussed this briefly as well with an accountant, who explained that I should be taking advantage of the Homestead exclusion. Yet, I don't fully grasp how this is accomplished.... and, must it be "purchased" through an S-Corp? Can the same advantage be accomplished via an LLC?

Thank you everyone for the feedback.  This was helpful.  Seems that there are some tax implications I had not fully considered.  At least I know that there will be no immediate taxable event with regard to capital gains taxes.  Also, I am in FL... so no community property issues.

Why would you recommend only 1 person on the LLC, Natalie....? Wouldn't that necessarily negatively affect the title/ownership interest of one of the spouses....?

Hello Everyone.  Forgive me if this has been covered, but I am a new member.  I have a property that is personally owned (by husband & wife) and mortgage free/unencumbered.  The property has increased in value substantially since it was originally purchased (was Homestead property for 30+ yrs).  

I want to transfer it to an LLC in order to gain the limited liability protections (husband & wife will still be the owners/members of the LLC - no other new ownership interests involved, or $$ being exchanged). The property in question is going to be used as a rental income property, since it is no longer the Homestead.

My question is: If I simply transfer title to a LLC (via Quit Claim Deed), will such a transfer be considered a taxable event which triggers Capital Gains taxes?