The question comes up late, usually a week or two before closing, and it is almost always framed as a formality. How should the deed read? Whose name goes on it?
It is not a formality. How title is held determines who is personally exposed if someone is injured on the property, whether the asset passes through probate, what taxes are triggered when the property changes hands, whether the mortgage can be called, and what the public record reveals about the owner. Those consequences last as long as the ownership does, and several of them are difficult and expensive to change afterward.
The right answer depends on facts that vary from one buyer to the next: whether the property is a residence or an investment, whether there are partners, whether financing is involved, and what the long-term plan is. Real Estate Lawyers ask those questions before the deed is prepared, because that is the moment when all the options are still open and none of them cost extra.
The Main Ways to Hold Title in New York
Individual and Joint Ownership
Property held by one person, or by more than one person, is the simplest structure. Among co-owners, the form matters. Tenants in common each hold a separate transferable share that passes under their estate plan. Joint tenants with right of survivorship hold equally, and the interest passes automatically to the survivor. Tenancy by the entirety, available to married couples, includes survivorship and offers a degree of protection from the individual creditors of one spouse. These distinctions are decided by how the deed is worded.
The Limited Liability Company
An LLC holds title in the name of the entity, and the owners hold membership interests. Properly formed and maintained, it can limit personal exposure to claims arising from the property. It also allows several owners to define their arrangement in an operating agreement covering contributions, distributions, management, transfers, and what happens if one member wants out. For investment property, particularly with partners or multiple assets, this is the common structure.
Trusts
A revocable living trust is used primarily to avoid probate and provide continuity if the owner becomes incapacitated. It generally does not provide creditor protection during the grantor’s life. Irrevocable trusts can serve estate and asset protection purposes but involve giving up control, which is a significant decision requiring coordinated legal and tax advice.
What Each Structure Does Not Do
An LLC does not protect against liability for a person’s own negligent acts. A revocable trust does not shield assets from creditors. No structure substitutes for adequate insurance, and no structure survives being ignored. An LLC that is not maintained as a separate entity, with its own account and proper records, invites an argument that the separation should be disregarded.
The Consequences Owners Do Not Anticipate
Transferring Into an Entity After Closing
Buyers frequently close in their own name and plan to deed the property into an LLC later. That transfer is a conveyance with its own consequences, and most mortgages contain a due-on-sale provision permitting the lender to accelerate on transfer. Some lenders consent, many do not, and proceeding without consent is a risk. Deciding on the structure before closing avoids the problem entirely.
Transfer Taxes and Filing Disclosures
Conveyances can trigger state and local transfer taxes. Transfers of interests in real estate entities may also create tax obligations. New York requires LLC member disclosure for certain one- to four-family residential transfers. Anyone expecting an LLC to provide anonymity should understand this requirement.
Losing Residential Tax Benefits
Property tax exemptions and abatements available to owner-occupants are generally tied to individual ownership and occupancy. Moving a primary residence into an entity can forfeit them, sometimes for more than the structure is worth.
Financing Terms Change
Residential mortgage products are typically written for natural persons. An entity borrower is usually looking at commercial or investor financing, with different pricing, terms, and often a personal guaranty. That should factor into the decision before an application is submitted.
Insurance That Does Not Match the Deed
When title moves to an entity and the insurance policy still names the individual, there is a mismatch between the insured and the owner. Carriers do raise it, and the time it surfaces is after a loss.
New Reporting Obligations for LLCs
The New York LLC Transparency Act took effect on January 1, 2026, creating beneficial ownership reporting obligations with the Department of State. Following a December 2025 veto of amending legislation, the Act as currently applied reaches limited liability companies formed outside the United States that are authorized to do business in New York, with United States formed LLCs exempt. This area has moved repeatedly, so anyone holding property in an LLC should confirm current requirements with the New York Department of State rather than rely on an earlier understanding.
Applications and Benefits
For Primary Residences
Individual or joint ownership, often paired with a revocable trust for probate planning, is frequently the practical choice. Married couples should understand what tenancy by the entirety provides before the deed is drawn.
For Investment and Rental Property
An LLC is the common structure, with the analysis turning on whether to hold multiple properties in one entity or separate them to contain risk. That decision balances protection against the cost and administration of maintaining several entities.
For Partnerships and Family Ventures
Where more than one person is contributing capital, the operating agreement is more important than the entity type. It governs distributions, decision making, transfers, deadlock, and exit, and it is far easier to negotiate at the start than during a disagreement.
For Owners Planning for the Next Generation
Coordinating the ownership structure with the estate plan avoids the common situation where the deed and the will point in different directions and the family sorts it out in court.
For Owners Refinancing or Selling
Reviewing how title is held before beginning either process surfaces problems while they can still be fixed on a normal timeline.
Frequently Asked Questions
Can I move my property into an LLC after closing?
Often, but it is a conveyance with tax and filing consequences, and if there is a mortgage the transfer may trigger the due-on-sale clause. Lender consent should be addressed rather than assumed.
Does an LLC keep my ownership private?
Less than most people expect. For one- to four-family residential transfers, New York requires member disclosure on the transfer tax filing, and other filings and reporting obligations may apply depending on the entity. The New York State Department of Taxation and Finance explains the disclosure requirements for LLCs involved in qualifying real property transfers.
Is a trust better than an LLC?
They do different jobs. A revocable trust is primarily a probate and continuity tool. An LLC is primarily a liability and co-ownership tool. Some owners use both, with the trust holding the membership interest.
Do I need a separate LLC for each property?
It depends on the number and value of the properties and the owner’s tolerance for administration and cost. Separating assets limits how far a single claim can reach, but every entity requires maintenance to be respected.
Choosing the Right Legal Partner
This decision touches real estate, tax, financing, and estate planning at once, which is why it benefits from counsel who see all of them. When selecting Real Estate Lawyers, look for:
- A practice of raising ownership structure before the contract is signed rather than while the deed is being prepared
- Working knowledge of transfer tax treatment and disclosure requirements for entity transfers
- Attention to how the structure interacts with financing, including due-on-sale exposure and lender requirements
- Operating agreements drafted for the specific arrangement rather than pulled from a form with names substituted
- Coordination with the client’s accountant and estate planning counsel so the pieces align
- Current awareness of entity reporting obligations, which have changed more than once recently
Andelsman Law represents buyers, sellers, investors, developers, and lenders in real estate transactions across New York and throughout the United States. Our attorneys work through ownership structure early, so clients understand the liability, tax, financing, and succession consequences while every option is still available.
Decide Before the Deed Is Drawn
If you are purchasing property, restructuring how you hold existing assets, or bringing partners into a deal, contact Andelsman Law today to work through the right structure before the deed is prepared.
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