The act of conveying real estate or other assets into the ownership of a limited liability company is a process by which individuals or entities change the legal titleholder. This action effectively moves the property from a personal or other business account to the LLC’s possession. For example, a sole proprietor might choose to place a rental property within an LLC for liability protection.
Undertaking such a transfer can offer several advantages, including shielding personal assets from business debts and lawsuits, simplifying business management, and facilitating future business transactions. Historically, this strategy has become increasingly prevalent as business owners seek to mitigate risk and streamline operational structures.