It sounds like you took out a loan and mortgaged a rental property in your own name, and now you want to transfer title of the property to a corporate entity. The mortgage loan is a personal debt, not a corporate debt.
Transferring a debt from one person (natural or not) to another person is not an easy task. It requires the creditor to agree to the substitution or else a re-finance by the new debtor (the LLC) to replace the old one (you). If the LLC is new, it is unlikely you can demonstrate to a lender that the LLC has enough income or experience to satisfy their corporate lending requirements.
Longer term your plan should be to move an unencumbered property into a corporate entity, earn money on it, keep books for 24 months to show the entity has experience, and then either sell an existing property you own to it with a mortgage loan from the corporation or else buy a new property using such a mortgage loan.
While for liability purposes it may seem safer to have the LLC take title, the bank won't have recourse to you if the corporation doesn't pay. So, many times the bank requires a personal guarantee from you, provided you have the assets/income to do so. Be aware that liability typically extends from your existing homeowner policy to your rental, but when title moves to the LLC, your property may be naked with regard to protection from lawsuits. You need to discuss the ramifications of who has title and your insurance needs and legal protections before you embark on such a course. This is in addition to the tax consequences of a separate entity.
Yes, it sounds like you need legal, insurance, and tax advice from professionals.... more
Before you convey title to a corporation you need to consult with two other people.
First, your insurance agent needs to help you with coverage. Many rental properties are covered under extensions of liability from the homeowner's policy. You may want not only fire insurance protection but also protection for liability claims, such as medical or other injuries. Your insurance agent can explain how to protect yourself as officers of the corporation as well as protect the asset of the corporation from such claims.
Second, your tax advisor needs to explain to you the consequences of earning income through the corporation, which depends on how the corporation is structured and whether you have elected subchapter S treatment (or if you can).
Third, once you understand these parts of the resulting conveyance, a title attorney can easily draw up documents to effect the transfer, but don't wind up with a situation where you must file tax returns you weren't aware of or have a lawsuit filed against you personally with no protection or the corporation with no liability protection, unless you so choose.... more