Real Property LLC Operating Agreement Template

[David]

New client has a commercial building owned by the 2 owners of his main business. They have each reported the rental information on their respective Schedule Es.

 

They are now forming an LLC for the property and haven't used attorneys in the past for their rental properties. The property going into the LLC is a commercial buillding leasing space to their business as well as other businesses.

 

Does anyone know where I can go to find a free Operating Agreement template to give to the client? The bank is requiring one.

 

Thanks.

 

 

[Lee B]

Even if I had one I wouldn't pass it on and neither should you. An LLC operating agreement should be tailored to the situation and the members of the LLC. Everyone always assumes that everyone is going to live happily ever after. A well drafted agreement will spell out the details of how disagreements, departures, and dissolution will be handled.

 

Years ago one of my clients which had two brothers as exactly equal owners ended up in court with dueling attorneys and $20,000 in legal fees because nothing was spelled out as to how disagreements and departures would be handled.

 

An Operating Agreement is a very important document which needs to be done right.

 

It's not a meaningless piece of paper to keep the bank happy.

[ILLMAS]

Have an attorney write it up

[kcjenkins]

The very MOST you should do is mention LegalZoom.com   I would not do that without serious warnings, and urging them to discuss with an attorney.  

[michaelmars]

remember self rental like this is active not a passive activity so losses can't be used to offset other passive gains.