As we were discussing, I want to form an FLP to put the rental property in down the road. Are you saying that at the time I fill out the family limited partnership certificate (to be sent to sec. of state)-- at this time the FLP is NOT yet authorized--- should I also complete a quitclaim deed to move that property to my name? Would this in any way affect banking transactions? can I still use the LLC checks, etc? Can it receive transactions under LLC?
Your FLP is not official until registered with the state. Here is the statutory text:
(b) A limited partnership is formed at the time of the filing of the initial certificate of limited partnership with the department of state or at any later time not to exceed sixty days from the date of filing specified in the certificate of limited partnership. The filing of the certificate shall, in the absence of actual fraud, be conclusive evidence of the formation of the limited partnership as of the time of filing or effective date if later, except in an action or special proceeding brought by the attorney general
.Upon registration, you'll want to have the LLC property out of the LLC since the LLC will then be the official GP of the LP and any property held in the LLC would be subject to claims due to liability of the GP (which will be the LLC). So on the date of filing, you'll also want to record a quitclaim deed getting the property out of the LLC and to you individually. You can, on that same date, move the property from you to the LP.
You could still use LLC checks, but it would be for the LLC, not the LP. The LP really needs its own accounts and books.
In the scenario above, the rental property will be in my name for at least a few weeks (thinking it takes weeks before I get the FLP authorized). This is acceptable, but I want to know if this is how to execute it.
I think I addressed that above.