LLC operating agreements for Real Estate use

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LLC operating agreements for Real Estate use

Jason NA
Member since 2008 · 21 posts · 4 votes

I own a rental property. Lets say I decide to form and llc which i use to hold this rental property for obvious liability reasons.

My question is do i need to form the llc in ANY way differently for this use as opposed to an llc for another business like a coffee shop.

What if anything specifically must be different about the llc operating agreement when used for real estate?

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    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    19y

    Business is business.

    The differences will mostly come down to operating issues. More so if you expect to have more than one member. Then the details are mostly for dealing with your 'partner'.

    With a multi-member LLC plan on one person getting divorced or that they die. Then see how well the operating agreement will work. Expect to have a new member (ex-spouse or estate) so how will the surviving entity keep control while the exiting member gain a fair cash out?

    John Corey

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