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If my California LLC holds commercial real estate can i sell the LLC with the interest to said real estate property

Los Angeles, CA |

Before we sell our comercial building in los Angeles which is held by a two member california LLC , can we sell the LLC so the profits of the sell of the real property go to the new owner of the LLC?

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Attorney answers 2


You can sell your membership interests in the LLC which could include the commercial real estate. However, if your goal is to escape capital gains tax, I am afraid you will realize it one way or another unless you can find some other way to exclude the gain as, for example, with a 1031 tax deferred exchange. You need the services of a tax attorney or CPA with respect to this issue.

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If I understand your question, you want to know if you can sell the LLC including the real estate it owns. The answer to that question is: Yes. As Mr. Daymude indicates, there may be capital gains tax issues. So, you should include your tax professional in your decision to sell the LLC.

If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.

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