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Author Topic: LLC loses me buyer  (Read 508 times)

Nigeluk

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LLC loses me buyer
« on: November 21, 2018, 09:24:35 PM »
We are from the UK and travelled the state's for a year. We bought our RV in Florida in January setting up an LLC and registering it in Montana for tax purposes. It is now time to sell. We had a buyer lined up but his finance company would not release the cash to me as my name was not on the title as I had to make up a company name. So the deal fell through. Has any one else had this problem. Is there a work around?

Tom

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Re: LLC loses me buyer
« Reply #1 on: November 21, 2018, 10:39:18 PM »
Do you have a bank account in the name of the LLC? Would finance companies release the funds to the LLC account?
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Nigeluk

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Re: LLC loses me buyer
« Reply #2 on: November 22, 2018, 08:42:24 AM »
No we only have our British bank account but yes I was thinking along the same line. Then we could transfer the money into our account. But I think the problem is the finance company doesn't like dealing with an LLC as from their point of view it looks "dodgy"

Gary RV_Wizard

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Re: LLC loses me buyer
« Reply #3 on: November 22, 2018, 08:50:18 AM »
I don't think a lender would consider a company (LLC) "dodgy", but they surely would not turn over money without being sure it went to a legally authorized representative of the company.  Isn't there legal paperwork identifying you as a company officer with authority to sign legal documents, dispense funds, etc?  A bank would probably ask for that same paperwork if you tried to open account in the LLC's name.
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Nigeluk

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Re: LLC loses me buyer
« Reply #4 on: November 22, 2018, 12:01:57 PM »
Hi Gary
Yes I sent paperwork to the buyer linking my name to the LLC but it seems that wasn't good enough for his finance company.

Gary RV_Wizard

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Re: LLC loses me buyer
« Reply #5 on: November 22, 2018, 12:52:55 PM »
Since you dealt with the lender second-hand thru the buyer, we can only guess what their problem was.  I would have inquired more closely what documentation was needed to show that you are the owner and authorized representative of the LLC.  It's not just the monetary transaction - you have to be able to sign over the title in behalf of the company.  Nor is it a unique situation - LLC's ad similar small companies/partnerships routinely transact business of all kinds.
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Koodog

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Re: LLC loses me buyer
« Reply #6 on: November 22, 2018, 01:23:58 PM »
Most certainly a bank will not pay directly to a member of a LLC. It will only pay to the LLC itself as is listed on the title.
I'm very surprised whomever assisted you in setting up your LLC did not also set you up for monetary purposes.
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docj

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Re: LLC loses me buyer
« Reply #7 on: November 22, 2018, 02:02:59 PM »
I believe you ought to be able to sell the LLC itself, along with all of its assets, which would then transfer the MH to the new buyer.  The sale contract for the LLC would have to have the signatures of the Members (owners) of the LLC but that would then give the new finance company traceability as to who the money should go to.  Since you aren't in the US permanently it shouldn't matter to you if you lose control of the LLC.

One advantage of doing the sale this way is that the MH doesn't have to have a new title; your old one in the name of the LLC would remain valid.
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Nigeluk

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Re: LLC loses me buyer
« Reply #8 on: November 22, 2018, 09:13:02 PM »
Thank you all it all seemed so simple when I registered back in January. I will call the company who
registered the RV  for me in Montana and see what they have to say. I will report back.

Pugapooh

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Re: LLC loses me buyer
« Reply #9 on: November 23, 2018, 07:25:10 AM »
Can you "sell" it to yourself?  Of course it will probably cost some fees and taxes but I'm assuming you want to sell quickly.  I assume you are paying a storage fee somewhere and perhaps maintenance.  Just a thought.  Hope it works out soon.
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ro1459

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Re: LLC loses me buyer
« Reply #10 on: November 23, 2018, 08:21:05 AM »
From what you have said, you set up an LLC and I assume listed your RV as an asset of the LLC. You simply set up a checking account for that LLC  in the US and have the money wired into that account from the buyers lender. You or someone you designated must have authority to sign checks for that LLC and that person can sell the assets of the LLC, I've done it several times and it is an easy matter. The other way to sell assets of an LLC is to, as others have mentioned, simply sell the LLC and all assets. I believe you would still need a US banking relationship to have the funds wired into, but that should not be a problem. Good luck.
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DearMissMermaid

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Re: LLC loses me buyer
« Reply #11 on: November 23, 2018, 10:22:12 AM »
I believe you can set up a Paypal account for the LLC and receive funds that way too.

Sounds like you have to sell them the entire LLC which has the RV as its main asset.

Otherwise seems like you have to sell the RV from the LLC back to yourself again, then you sell it to them after it is in your name, but that could be costly too as for instance in Florida you pay sales tax on used RV when the title is transferred.
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TonyL

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Re: LLC loses me buyer
« Reply #12 on: December 04, 2018, 02:14:46 PM »
We have just set up an LLC to do the same thing. I had already asked what the procedure was when we want to sell. I was told that first you need to do a transfer of title or deed from the LLC to yourself, and then make sure payment is to your personal account. It might help if you have a US bank account.
Regards
TonyL