Funding your entity
Formation papers do not move assets by themselves — how to title property, assign interests, and keep the inventory honest.
Key facts
- An empty LLC protects nothing: liability separation depends on real ownership, separate accounts, and observing formalities.
- Real estate usually needs a new deed; brokerage and bank accounts need retitling; business interests need assignments.
- If a trust should control the company, assign membership interests to the trust (or name the trust as member) — don't assume the will fixes it later.
Why funding matters
Filing articles creates a legal person. It does not automatically transfer your house, brokerage account, or LLC interest into that person. Until you retitle or assign, the old owner still owns the asset — and creditors of that owner may still reach it.
The same lesson shows up in trust funding: a beautifully drafted revocable trust that never receives title is mostly theater.
Practical steps
List every asset that should sit in the entity. For each one, complete the instrument your state and custodian require (deed, assignment of membership interest, account retitle form). Update Elephant's asset inventory so owner fields match reality. Keep evidence of the transfer in the vault next to the formation docs.
Tax basis, transfer taxes, lender due-on-sale clauses, and securities rules can all apply. Use a real estate attorney, CPA, or corporate counsel for the actual transfer — this guide is orientation only.
References
This guide is educational only and is not legal, tax, or investment advice. Laws vary by state and change over time; confirm current figures with the linked primary sources or a licensed professional in your state.
Related guides
Entity formation checklist
The practical sequence from name clearance through bank account — the same steps Elephant tracks in the entity checklist.
Holding company vs operating company
Why families often separate ownership (holdco) from day-to-day business risk (opco) — and how that maps to Elephant's entity registry.
Revocable Living Trust
How a living trust avoids probate, what it doesn't do (reduce taxes), and why an unfunded trust is worthless.
Put it into practice
Elephant turns these documents into a guided, state-aware workflow — drafted, executed, and stored in one encrypted vault.
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