LLCs

What is an operating agreement?

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An LLC Operating Agreement is a legal document that outlines the duties, rights and ownership percentage of the all the members who own the LLC. All of the owners must sign this document. It usually sets forth the financial arrangement of the members, how profits and losses are distributed, who has management rights, and what kind of […]

LLCs

Should You Use a Series LLC? Exploring the Pros and Cons

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​The series LLC is a novel limited liability entity that promises to solve many problems of the real estate investor. This article is meant to highlight some of the pros and cons of using a series LLC in your real estate investment. The Pros The traditional asset protection advice that gets repeated all the time […]

LLCs

Why a Single-Member LLC Needs an Operating Agreement

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How easy is it to form a single-member LLC? Most investors log onto their Secretary of State’s website, pay their fee and file the state form to create their LLC, and think they’re done. Unfortunately, that’s not the whole story. A limited liability company needs to have rules about operating itself, what happens when it’s dissolved, […]

Charging order

Ohio and the charging order

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Ohio law now limits a creditor’s remedy to the charging order when trying to get money out of an LLC. For a more extensive discussion on what a charging order is, see my earlier article here. The Ohio Legislature finally got around to limiting creditors’ remedies when trying to gain assets to a debtor’s cash […]

Charging order

The charging order: a debtor-friendly LLC law

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LLC gurus have often pushed novice investors to organize their LLCs in Nevada or Wyoming or some other faraway state. The charging order is usually the reason why WY or NV are considered “investor friendly.” Let’s consider a brief scenario. You own an LLC that holds several rental properties worth over a million dollars. It’s […]