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I should have given you more information. We had an offer for the land when the LLC was formed because without the land the income would drop significantly. Hence, we wanted to cut expenses for directors, officers, etc. All assets were transferred to the LLC except the land so that the buyer could purchase the corporation or the shares and thereby gain ownership of the land, while we avoided the tax from the land sale. But after a year of negotiations the buyer backed out and there is no foreseeable buyer in sight. The stockholders in the corporation were supposed to become the members of the LLC, but if we issue them member certificates it seems to trigger a taxable event. Perhaps the LLC can purchase the land from the Corporation at it's purchase price ($27,000 in 1917, now appraised at about $7 million)?
Thank you for your responses. It is regretable as we were served by local counsel (who set up the LLC) and local CPA (who mandated that the corporation be the sole member). If you are allowed to, and wish to help me in the future, please provide your name, address and contact numbers.
Manager, LF&L Minerals LLC