How do I start a LLC and transferr my investment property to it? Please help. thanks in advanced.
Gerald
You can go to the web site below and form a Delaware LLC online. They explain the process on the web site. There are advantages to incorporating in DE.
Then, you do a quit claim deed to transfer property to the LLC.
I do not have ownership in the web site below. But, I have used it to form LLC. Price and service are great! LLC was formed same day.
Basically you will need LLC docs drawn up, so I would recommend getting an attorney to draft them for you. I will also inform you that you better investigate the lender before you refi the property. I know a few big lender that will not lender to properties in LLC’s, this means you will either have to find a lender that does, or you will have to quit claim the property out of the llc when you refi and after the file closes, you will have to quit claim the property back into the LLC, just a heads up
You didn’t say what state. In most states you don’t need a lawyer to form an LLC, and most of the forms are available online, either through the Secretary of State or (as in New York) the Department of State.
While a Delaware LLC is easy to form, I don’t agree that you should chose Delaware unless that is where you property is located. The reason is that you’ll have to qualify the LLC to do business in that state, and qualifying usually costs almost as much as forming in the first place, and often requires even more paper work. Sometimes it also involves tax complications. So, I suggest you stick with your state.
There are online services that you can use, like the Company Corporation (www.incorporate.com), but you can save on fees by doing it yourself. Any reasonably intelligent person can do it.
The property deeds may be a little trickier, and that will vary county by county, depending on where it is located. Most counties have a Clerk of Courts or Registrar of Deeds, and they are usually quite helpful. Start with their web sites. If you are patient you can probably get this done without a lawyer as well.
As for deed forms, you already have those — in the form of the deeds you received when you purchased the properties. In the new deeds you will be the grantor (or transferor) and the LLC will be the grantee.
Good luck.
A couple of examples linked below.