USA Do I Sell or Contribute this Asset from One LLC to Another LLC?

[djcrawfo12]

My wife and I each own a single member LLC for separate businesses. Due to timing and financing constraints Husband LLC purchased a vintage truck that our accountant said we could then contribute to Wife LLC. Husband LLC paid for the truck in full and received the title in the name of Husband LLC.*

I want Wife LLC to bear all liability for the vehicle (e.g. insurance and accident liability in Wife LLC’s name).

Do I now “sell” or “contribute” the truck to Wife LLC? Which is better, and how do I do it?

*Important Note: Husband LLC actually received an unsecured loan (QuickBooks Capital) that helped to purchase the vehicle up front. There is no lien on the car. But payments are due monthly on the loan. In both cases of either A) selling the vehicle or B) contributing the vehicle, is there a way for Wife LLC to somehow pay down the loan?

Our new accountant is largely tied up for the rest of tax season, but I can’t wait to find out how to handle this!

 

[BIG E]

You need to wait for new accountant to give you advice.
He or she will be signing your tax return as the preparer and is responsible for the advice that's given to you.

 

[djcrawfo12]

You need to wait for new accountant to give you advice.
He or she will be signing your tax return as the preparer and is responsible for the advice that's given to you.

While this makes perfect sense, I am not able to wait until the end of May (6 weeks) to have his full input. One way or another, I will transfer the vehicle Title to Wife LLC in the next week. If I make a mistake, or choose a non-optimal method for selling or contributing the vehicle to Wife LLC, I and my accountant will have to deal with that and then clean up the choices I make.

Since I am far more ignorant regarding the pros/cons of the choices in front of me and basic execution, I'm trying to research better ways to move forward (so my accountant has a smaller mess to clean up, if that's what happens!)

If you or another can help me make a more informed decision, that would be hugely appreciated!

 

[BIG E]

There's an ethics situation that you seem to be overlooking, even though this board has anonymous posts.
It's unethical to provide professional advice to people who are not your clients and blindly advise when you
don't have documentation and other evidence to support your advice.
Your new accountant will probably tell you the same thing and question whether to take you on as a client
if that's your attitude of taking action and worrying about the consequences later.
Based strictly upon what you originally posted, if the vehicle was more applicable to her business than yours, then
what should have taken place was for you to have funded her business to purchase and register the vehicle
under her business name, with her insurance policy and document business use for her business.

 

[djcrawfo12]

There's an ethics situation that you seem to be overlooking, even though this board has anonymous posts.
It's unethical to provide professional advice to people who are not your clients and blindly advise when you
don't have documentation and other evidence to support your advice.
Your new accountant will probably tell you the same thing and question whether to take you on as a client
if that's your attitude of taking action and worrying about the consequences later.
Based strictly upon what you originally posted, if the vehicle was more applicable to her business than yours, then
what should have taken place was for you to have funded her business to purchase and register the vehicle
under her business name, with her insurance policy and document business use for her business.

I’m just a humble entrepreneur looking for help. Please don’t confuse my openness and ignorance for unethical motives.

If you have a change of heart, (or someone else sees this) I still want help. Telling someone how things “should” be done is only helpful if I’m Marty McFly... and unfortunately I’m not!