angela1
Level 3

My clients bought a rental property in Feb 2021 to use for Airbnb. A "friend" told them they should create an LLC for this rental. In July 2021 they used legal zoom to create an LLC. Since they did all of this themselves, there are a lot of items that need corrected. For example the property and mortgage is in the owners name and not associated with the LLC at all. The LLC pays the mortgage and all related expenses. My research tells me that they need to have an attorney draft a "Quit Claim Deed" and legally transfer it to the LLC. My clients do not want to do this. Is there something easier they can do? Can they do a transfer of the property without the Quit Claim Deed and amended the partnership agreement to state that the owners are transferring the property to the LLC?  

 

Side note: My clients are a husband and a wife. This will be filed as a business and not a rental because they offer substantial services and have a short rental stay. 

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