For california LLC who holds rental property, if they sell the rental property within the llc, they will need to pay the llc fee. How do they usually avoid the LLC fee? Do we suggest client to get the title out of the llc and transfer to personal and sell it under personal name? Or do we elect the LLC to be a S corp in the year when they sell it? Thank you so much for your help!
You could take it out of the LLC and into the owners’ names a tenants in common. Don’t know if the FTB will try to go after the t/p.. But that’s probably a better route than the S corp where you will incur tax at the S corp level when the property is sole