What you owe doesn’t affect how much tax you owe. 

Best to check with a tax pro to ensure compliance!

In non-community property states a husband/wife LLC is supposed to be treated as a partnership  And transferring from a revocable trust (reported on your 1031) to a partnership LLC (that files it's own tax return) is changing the tax payer. 

Novo also integrates well with various business tools, which might streamline your operations.Business Credit Cards: If you’re looking for a solid credit card option, Capital One Spark Cash Plus offers unlimited 2% cashback and no foreign transaction fees.

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

Consult your local CPA to calculate accurately and minimize your tax liability.

In that case you might save taxes building with them.

The promise of accelerated depreciation and immediate tax savings is attractive.

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

If they don’t satisfy that call, the broker could force a sale of securities, making them incur unnecessary tax liability.Let us know which brokers offer the best SBLOC terms.