Ask an Attorney: Your Questions Answered

LLC Ownership Transfer

Moderator — Wed, 17 Jun 2009 01:31:20 GMT

Is there any tax consequences when I transfer my ownership in (single member LLC) to my child ? What about in the event of death, how will the ownership get transfer ? Should I have a will for this purpose ?

80/20 Ownership and LLCs

Moderator — Mon, 06 Apr 2009 02:09:51 GMT

My friend and I are buying an investment property with 80/20 ownership. We agreed to form a limited partnership entity and create LLC general partner. Can we give equal right to the LLC so that we have the same voting right regarding the management of this investment property? Or is this advisable since I am the majority owner.

I have a question regarding filing a DBA/Fictitious Name.

Moderator — Sun, 30 Nov 2008 07:32:08 GMT

I am going to be incorporating in Nevada. The company will have several websites, all of which will have their own DBAs.

Our office is going to be located in Pennsylvania. I will be getting a ''Certificate of Authority'' to qualify the Corporation to do business in Pennsylvania, but still remain bound and protected by Nevada laws.

The DBAs for each website will only exist and be advertised on the web. The office lease will be in the Nevada Corporation''s name (which will be qualified to do business in Pennsylvania). The bank accounts and assets will also be in the Corporation''s name.

The only thing that will be in the name of the DBAs will be their respective merchant accounts to collect payment (which will then deposit into the main Corporation''s bank account).

Where should I register my DBAs? Nevada or Pennsylvania?

Thanks!

Would a 2 - 3 million umbrella policy take the place of forming an LLC...

Moderator — Mon, 13 Oct 2008 20:46:45 GMT

Would a 2 - 3 million umbrella policy take the place of forming an LLC to hold land and buildings worth approximately 2 million? Even with an LLC, I am under the impression it would not stop someone from also sueing you personally under certain circumstances. Thanks. Please only send answer by email. Is there a time when an LLC would work better than having an umbrella policy? Thanks, Sue.

Canada and Nevada LLCs

Moderator — Fri, 10 Oct 2008 20:53:27 GMT

I would like to know if you would offer counseling service or strategic coaching to someone from Canada.

I would, at first invest mainly in BC and Canada but would like to see if I would benefit from forming a Nevada LLC for my main company and of course, separate LLC for each individual acquisitions based on the location.

Developing intellectual property and Holding LLCs

Moderator — Thur, 02 Oct 2008 02:52:26 GMT

Having been developing intellectual property for the past twelve months and reducing conceptions to practice, is there such a thing as a holdings LLC from which point to spin off other LLCs designed for each product to market and are there ramifications involving LLCs designed to acquire the unusable or failing intellectual property?

1099 vs. LLC

Moderator — Wed, 27 Aug 2008 17:29:11 GMT

A job wants me to be a 1099 worker. I know what it means. Want to know if I could create my own LLC an have the company pay my LLC then my LLC pay me. Also would like to talk about me tying all this up in my future profession of Golf.

Commercial Leases, Incorp and Personal protection

Moderator — Wed, 27 Aug 2008 17:25:25 GMT

I signed a commercial lease as a dba about a year ago, I have since incorporated about six months ago. Now I am being sued for non-payment under my personal name for eviction. Can they file a suit for eviction if I am now INC.? Do I have any protection under the INC or do my rights not apply to prior contracts or leases?

LLCs, Mortgages and Personal Names

Moderator — Mon, 04 Aug 2008 03:02:56 GMT

Can a rental property be placed under an LLC but have the mortage under a personal name and still maintain a seperate entity status?

Rental Properties and LLCs

Moderator — Mon, 04 Aug 2008 02:59:28 GMT

I live in Texas and wish to purchase a rental property, with title to be held by my brand new LLC. I can get a very competitive mortgage rate in my own name, but none of the lenders will let the LLC hold title to the property at closing.

However, one bank and one mortgage broker suggested that I take out the mortgage and title in my own name, and then after 30 days, EITHER transfer title to my LLC OR make out a quit claim deed to my LLC.

Q1. Is this good advice? Please discuss both options. (I am aware that its expensive to transfer title).

Q2 Is there any way to ensure that the mortgage seller isn't just giving me a line? Given that most lenders would NOT let me transfer title after closing, I wonder whether it really is okay with the lending institution. I don't want my loan to get called in!

Asset Protected Family Limited Partnership

Moderator — Mon, 30 Jun 2008 21:20:01 GMT

When is it most appropriate to use an Asset Protected Family Limited Partnership?

First Property Purchase and LLCs

Moderator — Sat, 28 Jun 2008 20:27:25 GMT

I am looking into buying my first property. It is a duplex and I plan on living in one side. Is an LLC necessary at this point? Would I have enough protection through good insurance and a good lease?

Is an LLC an appropriate entity to hold solely portfolio assets (stocks, bonds, options, mutual funds) if there is no ''real'' business activity?

Moderator — Sat, 28 Jun 2008 20:23:21 GMT

Is an LLC an appropriate entity to hold solely portfolio assets (stocks, bonds, options, mutual funds) if there is no ''real'' business activity or rental income? Is there a better entity for this? I''m looking for personal liability asset protection and minimizing taxation during generational transfers of family wealth, but don''t want a significant increase in tax paperwork or double-taxation. I live in a state

(WA) with no personal income tax, but which does have corporate/LLC taxation.. Can I hold portfolio assets in an out-of-state LLC and collect capital gains and other passive income without having to register to do business in my State of residence? Also, does giving money earned from my ''day job'' to my LLC for portfolio investment constitute a ''gift'' subject to gift tax rules, or does transferring personal assets into an LLC you control have no particular tax implications?

Mortgages and LLCs

Moderator — Fri, 23 May 2008 18:45:14 GMT

I am a young first time investor in the early stages of setting up my investment strategy. I was talking with a Mortgage Broker today about getting pre-approved for a loan and I told her how I plan on setting up an LLC to hold the property. She then informed me that a fixed rate mortgage does not apply to someone like me who is planning on using an LLC. She said she was going to do some more research and see what she could find, but the rates would probably be higher. This was a surprise to me and I am wondering 1: why that is and 2: what is a good type of mortgage for use with an LLC?

Doing business in multiple states

Moderator — Fri, 23 May 2008 18:43:48 GMT

I soon will be purchasing properties in South Carolina and Hawaii. My other properties are in separate LLC's in AZ. I want to set up a Nevada or Wyoming entity to add an extra layer of protection and use a nominee service for the new entities. Can I do business in both states as a foreign entity? Should bank accounts (to collect revenue) be in Hawaii and SC or in Nevada/Wyoming?