Transferring property to a Limited Liability Company (LLC) can provide asset protection, tax advantages, and professional credibility—but how much does it cost?
The cost can vary widely depending on your location, property value, and legal structure, but understanding the typical fees and requirements can help you plan the transfer correctly.
In this guide, we break down the actual costs involved in transferring property to an LLC—including legal fees, taxes, and hidden charges.
Why Transfer Property to an LLC?
Before we dive into costs, here’s a quick recap of why property owners transfer real estate to an LLC:
- Liability protection for your personal assets
- Business structure for rental properties and investment portfolios
- Estate planning and easier ownership transitions
- Tax advantages in some situations
For more details, check: How to Transfer Property to an LLC
How Much Does It Cost to Transfer Property to an LLC?
1. Deed Preparation Fees
- Cost: $150 to $500+
- You’ll need a real estate attorney or title company to prepare the deed (typically a Quitclaim Deed or Warranty Deed) transferring the property to the LLC.
Tip: A Quitclaim Deed is cheaper but offers less title protection than a Warranty Deed.
2. County Recording Fees
- Cost: $25 to $200 (varies by county and state)
- You must record the new deed at your local County Recorder’s Office. This makes the transfer legally official.
3. Real Estate Transfer Taxes (If Applicable)
- Cost: 0.1% to 2.0% of property value
- Some states or counties charge a transfer tax based on the property’s assessed or sale value—even if you’re just transferring it to your own LLC.
| Example States with Transfer Taxes | Approx. Rate |
|---|---|
| California | 0.11% – 0.22% |
| Florida | 0.70% |
| New York | 0.40% – 1.4% |
| Texas | No transfer tax |
Check with your local tax office to see if your state imposes this tax.
4. Title Insurance (Optional or Required by Lender)
- Cost: $300 to $1,500
- If you transfer the property and refinance, you may be required to purchase a new title insurance policy in the name of the LLC.
5. Mortgage Fees or Lender Approval (If Mortgaged)
- Cost: Varies
- If there’s a mortgage on the property, transferring ownership could trigger the due-on-sale clause, requiring lender approval or loan refinancing.
Some lenders may charge:
- Assignment fees
- Loan modification fees
- Or require full repayment of the mortgage
6. Legal and Professional Fees
- Cost: $300 to $1,000+
- You may want to hire a real estate attorney or accountant to ensure the transfer is handled properly and won’t result in tax issues later.
Total Estimated Cost Breakdown
| Fee Type | Estimated Range |
|---|---|
| Deed Prep | $150 – $500+ |
| Recording Fee | $25 – $200 |
| Transfer Tax | 0% – 2% of value |
| Title Insurance | $300 – $1,500 |
| Legal/CPA Help | $300 – $1,000 |
| Total Estimate | $500 to $3,000+ |
The final cost depends on your state, property value, and financing situation.
Can You Transfer Property to an LLC for Free?
In theory, you can draft and file a deed yourself and avoid attorney fees. However, this is risky if:
- There’s a mortgage on the property
- You’re unsure how transfer taxes apply
- You don’t have an operating agreement for the LLC
- You want to avoid title issues in the future
Final Thoughts
So, how much does it cost to transfer property to an LLC?
Typically between $500 and $3,000+, depending on legal fees, taxes, and your mortgage situation. While the process can be affordable for cash-owned properties, it’s always wise to consult a professional to ensure your transfer is legally sound and financially smart.
