How to transfer property to a LLCWe’re Just Not Annoying®
transfer property to a LLC
Transferring assets into your new LLC can be a cumbersome process. A great option is to have us form an LLC for you, and then take all the LLC papers into your local attorney and have them draft the bills of sale and help you through the process of transferring assets into the LLC. You can even take in some of our templates here so they have a base place to start off of. If your assets are titled items it will take issuing bills of sale and refiling title work and deeds of trust with your county DMV and county property recorder. If they are untitled items such as cash and other assets, it’s as simple as creating a bill of sale.
Here’s some free templates:
Documenting these items with a certified date is the most important thing to avoid fraudulent transfers. You don’t give these documents to anyone. They are all private documents, but having a notarized signature on each bill of sale, gives the documents a certified date, should a question ever arise in the future.We recommend getting these documents ready for signing, and then actually going down to your bank and asking a banker to notarize your signature or anywhere where you can get a notary to stamp your signatures.
What is a fraudulent transfer of assets?
If you already have a debt you owe and you cannot pay it, you can’t just swap assets and money around to hide. If you have a judgment on you that you don’t want to pay, you can’t just clear out your bank account and not pay it. There is a MASSIVE misconception that people can just form a holding company, move some assets and money into it and not pay their debts. While you may be able to pull this off for the short term, you will get HAMMERED if this comes out in court. Shuffling money around to specifically avoid a debt is called a fraudulent conveyance of assets, or a fraudulent transfer of assets.
What if I have just normal debts?
If you’re not in default, you have normal debts, and you’re making your payments or paying people you owe without problem, you should be totally fine transferring assets into an LLC. Now, let’s say you’re paying your debts now, move a bunch of assets into an LLC, and then stop paying… That’s no good. Let’s say you stop paying even 4 years from now; a court would probably still void out your transfers and force you to unwind the LLC. The key is time and circumstances. If you moved assets for a legitimate purpose like restructuring your assets and you’re not trying to fraudulently defraud people, you have a great chance at having asset transfers into an LLC be a legit transfer.
What if I already have a judgment?
You should not be transferring assets around. You’re playing with fire. You should be working with your local attorney for each and every step you make. We all make financial mistakes. We can help you start a new LLC to start over, but you REALLY shouldn’t mingle it with old business and you definitely shouldn’t go transferring assets into it unless your attorney advises you to, and if your attorney advises you to do transfers, we’d recommend you get a second opinion.
If you’ve already formed an LLC, you can switch the registered agent to us, so you can use all these templates and many more to maintain your company. If you’d like to change registered agents you can order below: