La Compagnie C'est Moi: 4% Ratio Available to Single-Member LLC
The South Carolina Supreme Court recently considered the limited liability company (LLC) as a "disregarded entity" for tax purposes. In CRFE v. Greenville County Assessor issued on August 29th, the Court determined that S.C. Code Ann. Section 12-43-220(c) does not prevent a single-member limited liability company (LLC) owning residential property from obtaining the 4% legal residence property tax ratio. Sherry Ray bought residential property in Greenville County in her name and lived there, and as a result the property was taxed at the 4% legal residence ratio. She formed CFRE as a single-member LLC with herself as the sole member. (She did not have the LLC taxed as a corporation, and CFRE did no business and was formed only for asset protection/estate planning purposes). In 2006 Ray transferred title to her residence into the LLC. Because that transfer is considered an "assessable transfer of interest" per S.C. Code Ann. Section 12-37-3150 , the Assessor