Once the 1031 is complete you dissolve the LLC and distribute the assets (property to the individual that wanted to 1031 and cash and taxable event to the partner who wants out.The thing you absolutely do not want to do is to dissolve the LLC and then sell the property. 

Income and distributions are two completely different things.

Unlike LLCs, in which you can generally distribute property without tax implications, Property distributed via S-corp is treated as if sold to a shareholder for its fair market value. 

Do we just make the wire and note in our accounting that we were still starting up and unsure of how to distribute capital? 

@Autumn WebbIn addition to federal and state taxes, if you are under age 59 1/2 at time of the distribution a 10% early distribution penalty will apply.

However, I have to scrub through all the notices to check if there is any real estate involved in the distribution. 

So would we just put all the funds into the LLC and distribute from their?

Let's say I had a valid LLC, (which I don't know if my scenario would be considered or not) I thought that (in GA anyway), the only thing personal creditors could obtain is a charging order against debtors share if is any distributions were made??...

The only way to get the property out would be to have the property appraised and then transfer it out of the IRA to yourself as a taxable distribution. 

Yes, one syndicator I invested with started to provide all documents, statements, distribution history and the like online.