Info on transfer of ownership from private to LLC

[pacergal]

There are so many knowledgable folks and business owners on this forum.
Hopefully, this will make sense to you, and I am asking the right questions.

I am looking for information to assist DS (and myself to understand the process). He started a side business, which is becoming more successful. He would like to transfer ownership from himself personally to a LLC, which he just licensed.(private ownership to LLC), possibly including his car to use for the business. He has done much research, but wants to share/ask questions/run things by me. And I don't have a clue! I can understand finances, but not specific business/legal stuff--lol.

He does plan on consulting with a lawyer, but would like to have all of the research/paperwork/etc done ahead of time.

Has anyone done something like this? What steps does he need to take?
Can you refer me to any good books or articles to understand the general process, so I could ask him good questions?

He has great goals to grow his business and branch out into property management, while working his regular job, so I am encouraging him to do what he can.

Thank you!

 

[OldShooter]

It's mostly a tax issue. Talk to a CPA for tactics, a lawyer for implementation. I had a large commercial building in an LLC and my partner and I took it out of the LLC to own it as a partnership. There was a big capital gain tax bill. IIRC the IRS said it had to transfer at its current market value and the LLC had to pay tax on the difference between its book/depreciated value and current market.

This is not DIY stuff, not that your getting educated is bad in any way.

 

[Senator]

If you transfer/sell your vehicle (or other assets) to an LLC, you likely owe sales tax on it (again). The LLC is basically buying it. Even if you already paid the sales tax.

If you lease the vehicle (or other assets) to the LLC, and the LLC pays for everything and a lease payment equal to the depreciation, there is no sales tax.

 

[pacergal]

Oldshooter and Senator--
Thank you, a checkin with a CPA would help with any tax issues, hadn't thought about that

 

[Offgrid Organic Farmer]

We formed two LLCs.

One LLC we asked our lawyer to transfer our farm's deed.
The second LLC we used to purchase our apartment complex.

It was not difficult at all.

 

[pacergal]

Thanks all--
it sounds like he is on the right track and legal/financial consults should help point him in the right direction without too much trouble.