I did a reverse 1031 exchange and purchased a property in FL. The 1031 exch company formed a Single Member LLC in FL to hold the property till the relinquished property was sold. The property that was relinquished (sold) was in the name of a simple Husband & Wife Trust. We are the only trustees.
So for IRS 1031 exch purposes the new property has to be in the same Trust name.
So the new Single Member of this LLC in FL is the trust.
So far so good.
However, now I am reading on the Internet that Single member LLCs do not offer much protection especially in FL. Any solutions?
How can I satify the IRS and protect myself? ie have the LLC owned by the Trust (for the IRS) and yet have 2 members (my husband and I - for protection)?
Any solutions?
Thank you.