[WSBAPT] Transfer of ADU into an LLC?

[Roger Hawkes]

Please reply to list.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric C. Reutter
Sent: Tuesday, February 28, 2023 4:37 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Transfer of ADU into an LLC?

Hi all,

We have a client who wants to transfer an accessory dwelling unit (ADU) into an LLC, so as to operate the ADU as a rental property and receive the associated LLC liability protections. The ADU is on the same parcel as the client's primary residence.

This is the first time I am dealing with this particular issue. I am stuck on the threshold issue whether it is possible, or if possible whether prudent, to transfer just the ADU portion of the property into an LLC. Or, is there is some other clean solution that allows a client to receive LLC liability protection for an ADU rental unit?

If anyone knows the best practice here, or if there is an effective and simple technique to leverage LLC ownership of an ADU, your insight would be greatly appreciated.

Best regards,

Eric C. Reutter JD, LL.M.

Condie & Adams, PLLC
611 4th Avenue, Suite A
Kirkland, WA  98033
(voice):  (425) 450-1040
(fax):  (425) 450-1041
(email): eric at condieadams.com<mailto:eric at condieadams.com>
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