Putting Your Own Property in an LLC It is legally possible to put your own primary residence into an LLC, but it may or may not be the right decision. As a reminder, the LLC’s premise is to protect assets. When you create one to house your business or property, it will separate them out from your personal assets.

Can you sell a single-member LLC?

The sale of a single-member LLC is typically handled as an asset sale. The proceeds are passed through to the owner to be taxed on the owner’s personal income tax return. Multi-member LLCs and LLCs that choose to be taxed as an S-Corp or C-Corp can be sold under an entity sale or an asset sale.

Can a home be owned by a LLC?

For example, if the house is owned by an LLC. The Treasury Regulations allow for the capital gains exclusion when title is held by a single-member disregarded entity. See 26 C.F.R. § 1.121-1. If the residence is owned by a multi-member LLC, the analysis becomes more complex.

Can a home be seized by a LLC?

Any home owned by an LLC can be seized by creditors without having to first apply the homestead exemption. At this stage of the conversation, folks usually point out that they don’t own the home — their LLC does. So why should the LLC’s house be used to satisfy their personal debts?

Can a spouse sell their share of a house?

This varies from owning a house as community property, an arrangement in which a spouse can will their share of the house to someone else. Under joint tenancy, however, an owner can still sell their interest in a property to someone else before they die. If you buy property with your siblings…

Can a second home be put into a LLC?

The legal calculus changes a great deal if you’re dealing with a second home, a rental property, or commercial property, as these usually aren’t protected by a homestead exemption to begin with. If you think you might want to put your property into an LLC, feel free to give us a call.