The IRS requires that properties purchased in an exchange be purchased by the same taxpayer. They could be held in the taxpayer’s name, a land trust or a single member LLC. The IRS has also ruled that LLC with two members will be considered a single member if the sole right of one of the members is to prevent the other member from placing the LLC into bankruptcy. The limited role member has no interest in the LLC’s profits or losses nor any management rights other than the limited right regarding bankruptcy. This is important in gaining the protection of a multimember LLC, without being taxed as a partnership or corporation.