Operating Agreement Review by Legal Team

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Operating Agreement Review by Legal Team

Vivek Shrestha
Member since 2024 · 4 posts · 0 votes

Hello All,
We are starting a new LLC for Long Term Rental investment. We have created an rental operating agreement for the partners within the LLC.
Do we need to consult with the Lawyer or legal team to finalize the operating agreement, so that when in need that document will act as a legal document towards our LLC for the members.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Vivek Shrestha:

    Hello All,
    We are starting a new LLC for Long Term Rental investment. We have created an rental operating agreement for the partners within the LLC.
    Do we need to consult with the Lawyer or legal team to finalize the operating agreement, so that when in need that document will act as a legal document towards our LLC for the members.


     yes I would consult with an attorney to make sure you have everything in there, for example what if someone files personal bankruptcy, dies wants to be bought out, arrested for fraud... Lots of things to consider.

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  • Vivek Shrestha
    OP
    Member since 2024 · 4 posts · 0 votes
    2y

    Thank you for the information. Will look for the attorney

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    No need to utilize an attorney for filing for entities. This is a process that can be done on the internet in a simple manner in most states and there are plenty of  filing services who can complete this task for less than an attorney will charge. However, having an attorney draft the operating agreement is money well spent. I highly recommend letting the attorney prepare the operating agrement based on questions they present you rather than have them mark up your version. Many believe this is a cost saving mecanism but in many cases it will cost as much if not more and will not be as sound of a legal instrument. Also good to seek out an attorney who specializes in real estate and understands the operations of your business. 

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  • Vivek Shrestha
    OP
    Member since 2024 · 4 posts · 0 votes
    2y

    Thank you @Stuart Udis

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