Investor · Leavenworth, KS · Member since 2017 · 13 posts · 5 votes
I recently registered a single member LLC in Kansas. I got an EIN from the IRS. I opened a business checking account. I have the first property under contract.
The title company is asking for an operating agreement. I downloaded an example from the bigger pockets fireplace and changed it around a bit to fit my needs. Before I get it notarized, I would like to have someone look it over to make sure it looks good and makes sense. I am trying to avoid paying $500 or more to go to an attorney.
Please let me know of anyone has experience with this or can recommend someone that can review it for me.
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
8y
A one person operating agreement doesn't have to be worth it's weight in gold since you are the only person who would have to agree with anything in it. The lender would just want to see the basic guidelines of how you plan to operate.
Investor · Leavenworth, KS · Member since 2017 · 13 posts · 5 votes
8y
My understanding is that the operating agreement for a SMLLC is what actually provides the liability protection and needs to be followed so that the LLC is actually operated like a company and treated as separate from the individual. Please let me know if I am thinking too hard on this.
SHELBYVILLE, IN · Member since 2017 · 19 posts · 7 votes
8y
@Kyle Beauchamp typically the formality of filing the entity offers the protection. However, you have to actually run that entity like a business - it wouldn't be fair for someone to skate liability for a small filing fee and a piece of paper.
For example, you should be keep separate accounts for your personal and business spending, make sure all documents related to the business are signed in the name of the LLC, and keep up with the required business and tax filings of the LLC.
I'm not licensed in Kansas, so please check with a local attorney or cpa to confirm.