LLC structure in 4 property acquisition

1 Reply

Attempting to structure a 50/50 partnership for a 4 property acquisition, fix and flip. 

My question is how to structure into the operating agreement a management fee for handling the ground work for all 4 properties?

Originally posted by @Joshua Meehan :

Attempting to structure a 50/50 partnership for a 4 property acquisition, fix and flip. 

My question is how to structure into the operating agreement a management fee for handling the ground work for all 4 properties?

 I recommend English as it is the language predominately recognized by the court system in the US.

...okay...joking aside....

I'm not an attorney and I don't play one on TV, but generally speaking my understanding of the operating agreement is that it governs roles and responsibilities of the management of the corporation. Generally speaking you're not going to see any sort of salary or management fee written in. This would be a separate contract between the LLC and the individual being paid as a manager. By doing this though you'll trigger payroll implications.

What you could possibly build into your operating agreement though is a disproportional profit distribution where you get more of the profit than the other person. 

Again...just my thoughts and opinions from what I understand...your best bet would be to just tell your attorney what you want to do and they'll draft up the documents in the way that makes the most legal sense.

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