what is the process to transfer property from an LLC to the sole owner of the LLC
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what is the process to transfer property from an LLC to the sole owner of the LLC
Owner wants to dissolve the LLC and sell the property. Owner is not a US citizen.
Asked on February 4, 2017 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The member (the sole owner) can simply sell the property to himself, the subsequently file the paperwork with the department of state in the state in which the LLC was set up to dissolve it. There are no special formalities involved; it can be done like selling the property to anyone else. Be aware that if the sale is not for (more-or-less) fair market value:
1) If there were creditors (including people who sued and have a court judgment) of the LLC, they may be able to set aside the transaction as a sham or fraudulent transaction meant to hide assets from lawful creditors.
2) The owner will reap a windfall from buying the property for less than market value and will have tax consequences.
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