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When transferring property into a limited liability company (LLC), a common mistake is using a quit claim deed. This type of deed does not provide warranties and does not effectively transfer ownership, as it implies that the property may not have clear title. Instead, it's advised to use a warranty deed when moving property into an LLC or land trust, as this assures third parties of a legitimate title transfer. A warranty deed communicates that the transferor is accountable for the property's title and establishes trust in the transaction, ensuring that potential buyers recognize the legitimacy of the deed and the person behind the business structure involved.
