Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 13 years ago on . Most recent reply

User Stats

41
Posts
1
Votes
Buck Tadlock
  • Involved In Real Estate
  • Pasadena, TX
1
Votes |
41
Posts

Partnerships

Buck Tadlock
  • Involved In Real Estate
  • Pasadena, TX
Posted

Looking for explanation on how to go about forming a partnership (LLC) to advance investing to another level. I seem to be stuck spinning my wheels and need a push.
Thanks

Most Popular Reply

User Stats

22,059
Posts
14,128
Votes
Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
14,128
Votes |
22,059
Posts
Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Forming such a partnership is easy. Nearly trivial. Go to the Secretary of State's web site and create a LLN. Go to the IRS web site and get an EIN. Take both of these to a bank and open an account. Both of you put in half the minimum the bank requires to open an account and you have a partnership. At the end of the year, file a partnership return and send each partner a K-1.

A better question is why do you want a partnership? What is the partnership trying to accomplish? What is each partner going to contribute? What is each going to get back? How long will it last?

Writing an operating agreement is hard. You may want to have an attorney help. You have to consider all the bad things that might happen, including the two of you facing each other in a court room. Or, one of you facing the other's pissed-off heirs wanting their money after the deal has gone bad and your partner had died.

So, what are you trying to do?

Loading replies...