The limited liability company or “LLC” has become a popular vehicle for real estate investment and development. The main advantages of creating an LLC, as opposed to another form of business unit, include: In addition, many states such as California, New York, Missouri, Maine and Delaware require that members of an LLC have an enterprise agreement. No matter where you live, the better, the more information you have provided in a business agreement. Our legal experts have helped thousands of companies submit their LLC papers, and we can guide you quickly and easily through the process. It can be overwhelming to collect, complete and submit the necessary legal forms, but we can help. We accept the concern of the legal process so that you can focus on managing your real estate investment business. Our business training service costs $0 plus government fees and includes one year free of our registered agent service. Protecting your LLC real estate through the enterprise agreement is essential. Call Edwards Law today to discuss the design process.
Everyone has an operating contract for Texas Series LLC? The main decisions related to the management of real estate properties should be explicitly defined in the enterprise agreements relating to rental real estate. Important decisions often have to be approved unanimously, unless a majority majority threshold is preferred for important decisions, so that one or a few minority owners cannot force the shutdown (which can disrupt the business and result in a loss of value in the real estate project). Some of the most important decisions that require the agreement of members of a real estate joint venture are: (i) the sale or exchange of all or part of the company`s assets (including the project or part of it); (ii) the acquisition, by purchase, exchange, leasing or by any other means of real estate or personal property by the company (except the acquisition of the project); (iii) the conclusion or modification of a lease agreement for the project (except in the context of normal transactions); (iv) the borrowing of money by the company or the granting by the company of rights, receivables, charges or security interest by the company on an asset of the company, as collateral of the company`s debts and obligations or by any other means, or by modification, extension, extension or down payment of a loan, in whole or in part; and (v) the conclusion of equipment or construction services contracts, including property management and leasing contracts. If you don`t have a decent operating contract, I doubt the LLC will be worth anything to guarantee legal protection, so why? Distributions — money sent to LLC members that are generated by the company`s revenues. This is usually calculated as a profit or amount after most of the company`s operating expenses have been paid. Division is a fair remedy that can be voluntary or involuntary (compulsory). If the co-owners of real or personal property cannot agree on the use, disposition or other physical property of a property, an owner may ask a court that the division of the property be split or that a sale of the property be forced. Thus, it is customary to include in enterprise agreements rental properties a provision requiring members to waive their right to share as a remedy in enterprise agreements. However, the LLC`s enterprise agreement should provide appropriate corrective measures or exit strategies to deal with possible deadlock situations in order to avoid the need for a judicial division.