About David K. Staub Expertise I am a business and tax attorney and have spent more than 30 years assisting people with contracts in a wide variety of business situations. I can answer questions about basic contract issues. My experience includes almost all common contracts including employment agreements, contracts for the purchase and sale of a business, shareholder agreements, partnership agreements, LLC operating agreements, leases, software development agreements, distribution agreements, franchise agreements, joint venture agreements and software license agreements, to name a few. I can also direct people to sources for answers to specific legal questions which cannot be answered in a forum of this nature.
Experience
Experience in the area I have been an Illinois business attorney for almost 30 years. I have an extensive practice in the mergers and acquisitions area and have been involved in the tax and legal issues on hundreds of business transactions.
Organizations Illinois State Bar Association;
Chicago Bar Association (former Chairman of the Corporation & Business Law Committee and former Chairman of the Mergers and Acquisitions Subcommittee; former Executive Committee member, Federal Tax Committee and Chairman of subcommittee on general tax issues); Glenkirk Foundation (Trustee; Vice-Chairman/Strategic Planning); Association for Corporate Growth, Chicago Chapter; Midwest Entrepreneur Forum; Midwest Association of Alpha Delta Phi - President
Publications Commerce Magazine; YLS Journal; ISBA Section of Taxation Newsletter
Education/Credentials Harvard Law School, J.D., 1977; University of Illinois, B.S. in Accounting, with highest honors, 1974
Disclaimer Responses are intended to be informational only. No response is intended to constitute legal advice or create an attorney-client relationship. Online advice is not a substitute for consultation with an attorney.
I'm about to purchase an investment property and will rehab it and most likely use it as a personal care home. It occured to me that I should probably form an LLC for this.
I close on the house on Wed so I won't have time to purchase it in the LLC's name. In the state of Georgia I can file the LLC online and get the Articles of Organization immediately. It will be a while, however before I will get an EIN and will therefore not have a checking account in the LLC's name.
Do you think things will be complicated, tax-wise or legally, if I purchase the home in the LLC's name and use funds from my personal checking account OR can I just transfer the property to the LLC once its formed?
The fair market value for the house is $300,000 and I'm purchasing it for $10,000. Would I need to sell the house to the LLC at fair market value or is there another way to get it out of my name?
Also, would the rehabbing cost be tax deductible since its an LLC?
Thanks in advance for your advice.
Answer Aneika,
There should be no problem transferring the house to your LLC after the purchase. In fact if there is a mortgage, many lenders will require that the individual buy the property and take out the mortgage in his or her own name and the transfer the property to the LLC.
You do not need to sell it to the LLC. You simply transfer it to the LLC.
I assume that you are going to be the only member of the LLC. It can get a little more complicated if there are more than just you.
Finally, you may want to make sure that the transfer to your own LLC is exempt from transfer taxes in Georgia. You don't want to discover later that the transfer created thousands of dollars of transfer taxes.
