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I Changed the Ownership of My Property From Myself to My LLC. What Do I Need to Do to Ensure Everything Is Updated Correctly?

Transferring a rental property from your personal name into an LLC is common but it’s important to understand that this is not just a paperwork change.

Audience: rental property owners who have transferred ownership of a property into an LLC and want to make sure MoveZen’s records, trust accounting, and tax reporting are updated correctly.

From an accounting, trust, and tax perspective, an ownership change requires specific updates to avoid reporting errors, payment delays, or compliance issues.

Here's what needs to happen.

 

Frequently Asked Questions

Is moving my property into an LLC considered a change in ownership? Yes. Even if you own the LLC, it's a legally separate entity.

Does MoveZen automatically know when ownership changes? No, property owners must notify us and provide documentation.

Will this affect my tax documents? Yes. Your 1099 must match the legal owner on record.

Do I need to do this even if nothing else changes? Yes. Banking, tax reporting, and trust ledgers must all be updated.

Why This Update Matters So Much

When ownership changes from an individual to an LLC:

  • The legal owner changes
  • The tax reporting entity changes
  • The trust ledger name must change
  • The recipient of owner disbursements often changes

If this isn't updated correctly, it can cause:

  • Incorrect 1099s
  • Payment delays
  • Trust account compliance issues
  • Confusion during audits
  • Problems during a future sale or refinance

Updating things early avoids all of that.

What You Need to Provide to MoveZen

To properly update ownership records, MoveZen accounting will typically need the following:

1. Proof of Ownership Transfer

One of the following is required:

  • Recorded deed showing the LLC as owner
  • Settlement statement or closing disclosure
  • County record confirming the transfer

This confirms who legally owns the property.

2. A New W-9 for the LLC

This is required even if you already submitted a personal W-9.

The LLC W-9 must include:

  • Legal LLC name
  • Tax classification
  • EIN (not your SSN)
  • Mailing address
  • Authorized signature

Your 1099 will be issued to the LLC once this is updated.

3. Updated Banking Information (If Needed)

If owner payments should now go to:

  • An LLC bank account
  • A different account than before

...accounting needs updated routing and account numbers.

If payments will continue going to the same account, that still needs to be confirmed.

4. Confirmation of Authorized Signers & Contacts

MoveZen needs to know:

  • Who is authorized to make financial decisions
  • Who should receive statements
  • Who has Owner Portal access

This is especially important if the LLC has multiple members.

 

5. Effective Date of Ownership Change

Accounting needs the exact date the transfer took effect to:

  • Close out the individual ledger correctly
  • Start the LLC ledger cleanly
  • Ensure income and expenses are attributed properly

This matters for both trust accounting and taxes.

What Happens Inside MoveZen After You Submit Everything

Once documentation is received:

  • A new owner ledger is created under the LLC
  • Future income and expenses post to the LLC
  • Owner statements reflect the LLC as owner
  • 1099 reporting is updated
  • Portal access is adjusted
  • Accounting verifies trust compliance

Nothing is retroactively changed unless legally required.

Important Tax & Accounting Notes

  • Income earned before the transfer stays with the individual
  • Income earned after the transfer belongs to the LLC
  • The IRS requires clean separation between entities
  • A single property may legitimately have two owners in one calendar year

This is normal—and handled cleanly when reported correctly.

Common Mistakes to Avoid

  • Assuming the LLC change is "internal only"
  • Forgetting to submit a new W-9
  • Not updating banking information
  • Waiting until tax season to mention the change
  • Assuming the portal will auto-update ownership
  • Not clarifying the effective date

Any of these can delay payments or create tax headaches.

Does This Affect My Management Agreement?

Sometimes.

Depending on your agreement and timing:

  • A simple addendum may be required
  • The agreement may be reissued under the LLC
  • Signatory authority may need confirmation

MoveZen will guide you if anything needs updating.

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