Make sure you do some homework and find a good hud consultant. 

@Nick Britton, I was hoping to learn how others were doing it without having to consult an attorney for this one line item.  

You probably should consult a local attorney.

Sounds like you need someone to review everything happening that doesn't have a "dog in the hunt".A local litigation attorney for maybe 100  for an hour ( you would have to check ) for a review and consultation for direction and next possible steps might be beneficial.No legal advice given.

Putting them into the LLC is mostly and asset protection play and maybe an estate move so, as recommended above, consult with some professionals and make sure it is worth the added expense and hassle.

Condos are regulated by NY Department of State and you have to file all sorts of fun stuff with the AG.Peek at these then I'd suggest consulting a RE attorney or maybe a commercial RE agent who's got experience with conversion.COOP Condo Conversion Processhttp://www.ncsl.org/documents/environ/NYcondo.pdf

So consult with your tax advisor and if you are willing to bite the bullet on the tax hit then all future gains in that account will be tax free for the rest of your life. 

@Janaye JoynerCongrats on getting educated, taking action, and consulting BP for answers to your questions.

I am currently doing IT consulting for a great TV, cell phone, tablet, and Laptop maker :-) things are great right now, but I always felt/feel I'm not in full control of my paycheck or my future as an employee.

Act like you are looking for a place in your area and you'll get a great idea on how to price your house, or consult with a real estate agent.