ritagol...@gmail.com wrote:
> I did a reverse 1031 exchange and purchased a property in FL. The
> 1031 exch company formed a Single Member LLC in FL to hold the
> property till the relinquished property was sold. The property
> that was relinquished (sold) was in the name of a simple Husband &
> Wife Trust. We are the only trustees.
>
> So for IRS 1031 exch purposes the new property has to be in the
> same Trust name.
>
> So the new Single Member of this LLC in FL is the trust.
>
> So far so good.
>
>
> However, now I am reading on the Internet that Single member LLCs
> do not offer much protection especially in FL. Any solutions?
What kind of protection do you want? An LLC can limit your personal
exposure for contract entered into by the LLC and for which you don't
give a personal guarantee. But you are always personally responsible
for your torts, corporation, LLC or not.
The "protection" they give you can still mean you lose your entire
investment in the company, which can be most of not all of your
assets. So no, an LLC does not really provide much "protection." A
good insurance policy is the best protection.
> How can I satify the IRS and protect myself?
Satisfy the IRS about what? You've satisfied the 1031 requirements.
What more do you think they need?
--
Stu
http://DownToEarthLawyer.com