People often form an LLC or limited liability company to protect their personal assets from attachment. If you own commercial or rental property, your attorney may advise you to deed that property into an LLC. If you own the property in your own name and are married, you may consider forming the LLC with your spouse, other investors or family members since you may have less asset protection under a sole-member LLC.
Form the limited liability company according to the requirements of your state. Many secretary of state websites have the formation documents available with instructions on how to complete the forms and method for payment of fees and costs. Contact an attorney if you are uncomfortable forming the LLC yourself or need legal advice regarding the implications.
Read More: How do I Transfer a Title of Property From a Person to an LLC?
Prepare or have your attorney prepare a warranty deed, making sure the names of all grantors or persons deeding appear correctly in the deed along with each person's marital status if required by state statute. The name of the grantee LLC should match the formation documents. The legal description of the property should match that contained in the prior deed to assure that the property is conveyed correctly.
Sign the deed along with any other grantors or owners of the property in the presence of a notary public who should acknowledge your signature with a proper form acknowledgment. Record the properly signed and notarized deed in the real property records in the county or jurisdiction where the property is located to perfect the title transfer in the real property records.
If you have an LLC that is formed outside of the state where the property is located, you may be required to register as a foreign corporation in order to legally transact business in that state.
State laws may vary as to form and substance of a warranty deed. Contact an attorney to assist if unfamiliar with deed requirements in your state.
Discuss any and all tax implications related to placing property in an LLC with your accountant.
Marie Murdock has been employed in the legal and title insurance industries for over 25 years. Murdock was first published in print in 1979 and has been writing online articles since mid-2010. Her articles have appeared on LegalZoom and various other websites.