The Estimated Costs of Transferring a Property into an LLC in King County, Washington
Transferring a real estate property into an LLC is a common strategy employed by property owners to protect their personal assets and manage their properties more efficiently. This is especially the case when the property is a rental property or used for business purposes where there is a higher probability of being sued. The vehicle often used to convey ownership to the LLC is called a "Quit Claim Deed."
What is a Quit Claim Deed?
A quit claim deed is a legal document that allows a property owner (the grantor) to transfer their interest in a property to another party (the grantee), in this case, an LLC. It's important to note that a quit claim deed doesn't guarantee that the grantor owns the property free and clear; it merely transfers any ownership interest the grantor may have.
What does the process of transferring property into an LLC?
- Form an LLC: Before you can transfer property to an LLC, you need to create one. This involves filing articles of organization with your state's Secretary of State and paying the associated filing fee, which varies by state.
- Prepare the Quit Claim Deed: The next step is to prepare the quit claim deed. This document includes the legal description of the property, the name of the grantor, and the name of the grantee (the LLC).
- Prepare the Applicable Tax Documents: Prepare the necessary tax documents provided by the county in which the property is located.
- Notarize the Deed and Sign the Tax Documents: Once the quit claim deed is prepared, it must be signed by the grantor in the presence of a notary public.
- Record the Deed and Tax Documents: After notarization, the deed is recorded with the county recorder's office in the county where the property is located.
What are the costs associated with transferring a property into an LLC in King County, Washington?
- LLC Formation Fees: $180 - $200 (Washington State Secretary of State) + attorney fees (if applicable)
- Initial 30-minute Consultation for Property Transfers: $165 for 30minutes
- Structuring Deal and Negotiation with Parties: Varies depending on the circumstances
- Drafting of Quit Claim Deed and Supporting Documents: Varies depending on the circumstances
- Notarizing & Signing of Deed and Documents: $10 to $50 (depending on method (in-person/mobile/remote online) and number of signers)
- Recording of Deed and Documents: $203.50 + $1 for each additional page + $10 tax filing (if no taxes are due) + convenience fees (if using e-Record)
- Any Applicable Taxes Due: 0% - 3.5% Depending on the value of the property and if any exemptions apply.
Why have Law Office of Theresa Nguyen, PLLC handle your property transfer?
We offer you many options and convenience to ensure that your property transfer is as seamless and easy for you as possible. If using the latest technologies, we can get your deed recorded in as little as 1 day without you ever leaving the comfort of your home or deviating from your normal schedule.
- Remote: Meet with our real estate attorney from using video conference or phone call.
- In-Person: Come to our office and meet with our real estate attorney in person.
- Remote Online Notarization: Get notarized on your smart phone anywhere and anytime.
- Mobile: Have a notary come to you.
- In-Person: Come to our office.
- e-Recording: Get recorded the same day or next day using our e-Recording system.
- Mail In: Get recorded in a few weeks.
Do we require a consultation with a real estate attorney?
Yes. At Law Office of Theresa Nguyen, PLLC, we usually require a 30-minute consultation for property transfers because of the need to identify any tax implications of the transactions. When property is transferred, the county, whenever they can, would like to collect taxes on the exchange. However, certain exemptions can apply which would exempt the transaction from taxes.
Because of the nuances of these laws, having the 30-minute consultation with a knowledgeable real estate attorney is necessary to determine the correct method of which to structure the transaction and record these documents. Skipping this important first step would lead to failure to identify these important facts and often ends up costing a lot more money.
How do I schedule a consultation with a real estate attorney?
- Video or Phone Consultation
- In-person Consultation (English Only) (Limited Availabilities)
- Vietnamese-speaking Consultation (Remote Only) (Limited Availabilities)