Real Estate Attorney for LLC creation and Advise

8 Replies

Are you creating a single-member LLC? If so, you can do it yourself in 5 minutes online. If you are creating a customized partnership, you might be headed in the right direction to make sure everyone knows their split and role.

@Vaishali V.

Yes, you can do that pretty easily online in nj. If single member I was advised you don’t an operating agreement since, well, it’s yourself.

Direct message if you want to chat about. Other than a few “paperwork” things such as the NAIC codes and stuff, it’s really easy in nj unless some other States where you have to mail stuff in for review.

@David M.

You need an operating agreement even for a single member llc. That is the most important document that will break your asset protection if not done properly.

I highly suggest using an asset protection, real estate and tax savvy, attorney for drafting it. If you create multiple llc in the same state for the same purpose you can have an attorney draft the first one and reuse the same template for the others.

And don't use legal zoom or the templates offered by a registered agent company. Usually while legally sufficient, these templates have absolutely no asset protection feature.

Originally posted by @David M. :

@Mike S.

Thanks.  I’ve talked to a few seasoned attorneys here...  

A lot of attorneys are completely ignorant regarding asset protection. They may be great for business deal, and of course you are not worried in a single member LLC about suing yourself nor having distribution dispute. However, in case of an outside lawsuit, and that is one of the main threat with real estate properties (either from a tenant or a creditor), your operating agreement will be scrutinized and used against you to pierce your company veil and force you to liquidate your asset. So if your local attorney told you that you don't need an operating agreement for a single member LLC, either it was an answer very specific to a single threat scenario, or you should find another attorney who is versed into asset protection.

Also as a side note, any bank or lender will ask you for your operating agreement when you deal with them... Not having one will burn you with them.

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