I am in Connecticut, if this is relevant.
I own a piece of land. My business partner is a builder. What we are thinking is to form a LLC with the land as my contribution and his labor as his contribution. The goal is to build a house on the land and then sell it.
My questions are:
1) Is there a conveyance tax due when transferring the land to the LLC? 2) If so, is there a better arrangement to avoid this overhead?We know we will have to pay the conveyance tax when selling the house to the actual buyer. But we just want to avoid any unnecessary tax in the due course.
Thanks.