Business structure

5 Replies

I currently live in Southern California. My brother lives in Oklahoma, where we grew up. We have agreed to start a partnership where I will handle the marketing and find the deals there in NE Oklahoma while he physically goes out to look at the houses and manages the wholesale or flip. I plan to find my own real estate deals here in SoCal as well. We will split our OK deals 50/50. I'm wondering what the best business/corporate structure would be in order to execute our plan. Can I use Legal Zoom for this or should I find an attorney? Does it need to be an attorney in OK or CA, or does it matter?

@Jason K Green  I agree with @Leo Kingston .  Start with the OK secretary of state and set up your partnership with them.  File the EIN number with the IRS, then go open a bank account and last but not least, put together an operating agreement.  If its with your brother (assuming you are close to him) then I would do it myself and save the additional costs.  Total cost to do all this is your time plus $104 (if you pay by credit card).  Not too bad.  Just don't forget to renew your entity each year with the state.  Its only $25, but is easy to forget.  goodluck!

Originally posted by @Jason K Green :

I currently live in Southern California. My brother lives in Oklahoma, where we grew up. We have agreed to start a partnership where I will handle the marketing and find the deals there in NE Oklahoma while he physically goes out to look at the houses and manages the wholesale or flip. I plan to find my own real estate deals here in SoCal as well. We will split our OK deals 50/50. I'm wondering what the best business/corporate structure would be in order to execute our plan. Can I use Legal Zoom for this or should I find an attorney? Does it need to be an attorney in OK or CA, or does it matter?


All of these gentleman are forgetting the most important part and why you NEED to find an attorney. To make sure you have quality partnership agreement when you and your brother don't get along.  Make sure it covers how split decisions are made, what must be agreed on. You can find an attorney elsewhere; however, they may need to do minor research on contract law there.  

You also need an accountant to help both understand the bookkeeping and tax requirements for your business. You MUST keep books including a profit and loss and Balance sheet.

@Steven Hamilton II  I would just figure since they are brothers they would wrestle and whoever wins is right, that's how it always worked with my cousins.   lol

Need a strong Op Agreement with partnerships, especially with family.  Gotta cover the Ds - what happens in case of Death? Divorce? Drug use?  Disinterest?  Default?  etc.  Spell it out or you'll end up being partners with your brother's pissed off ex-wife!  Woo-hoo!

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