Formation of a new LLC - questions

3 Replies

With 3 other friends, I am looking to start an LLC to ultimately start doing some investments in rental properties. I have some questions with regards to this:

- Does the LLC need to have its own separate office address, or can the address of the registered agent be used for the same? I ask because the LLC formation form has both of them listed separately with no clear instructions.

- When does an operating agreement need to be drawn up? It does not seem to be a requirement to form the LLC.

- Is it strongly advised to have a lawyer on board for LLC formation?

- Is an LLC required to have designated officers and/or managers?

- Is there any such thing as LLC insurance? And if there is, what does it cover?

@Angad Kamat We do these all the time. The specifics will very based on the state since the laws and rules LLC's are state controlled.

Q: Does the LLC need to have its own separate office address, or can the address of the registered agent be used for the same?

A:  Use different addresses.

Q: I ask because the LLC formation form has both of them listed separately with no clear instructions.

A:  There are a number of reasons, but first and foremost, you want to use the RA as a buffer from you.  If the addresses are both the same, why bother?

Q: - When does an operating agreement need to be drawn up? It does not seem to be a requirement to form the LLC.

A:  Yes.  It's not a requirement from the state, but without one, with multiple partners, you're looking for trouble.  The OA will define everything from responsibilities, to percent of returns, to percent ownership/control.  The returns and ownership don't have to be equal.

Q: - Is it strongly advised to have a lawyer on board for LLC formation?

A:  This really depends on what you are doing with it, and how many partners there are.

Q: - Is an LLC required to have designated officers and/or managers?

A:  See answer above.

Being that you have a partner then I would definitely get a lawyer to assist you in setting up and forming the LLC

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