Delaware Limited Liability Company Llc Operating Agreement: Fill & Download for Free

Stay away from Partnership Agreements when you can accomplish the same thing with an LLC Operating Agreement.And ignore the existing LLC.Here’s what you do.First, form an LLC in a state with very strong Charging Order protection like Wyoming or Delaware, each of you owning 50%, and draft your Operating Agreement to outline the exact terms of your relationship.The Operating Agreement is the key to the whole plan.Second, have the LLC form another LLC in the State where you are owning and operating the real estate investment, and then you have that LLC buy the property.If either of you are sued, and a Judgment results, the Judgment lien holder cannot get through the Delaware LLC to the LLC that owns the property, but can only get a Charging Order directed to the Delaware LLC.If the LLC that owns the property is sued due to a claim associated with the property ownership or operation, and a Judgment results, the Judgment lien holder might get through the weak-State LLC, but will arrive at the Delaware LLC, and will be stopped, and will be unable to get to either of you.A Limited Liability Company is primarily about limiting liability.After that, it is about convenience, flexibility, tax planning, and so forth.And for those things it is also better than a Partnership.I hope this helps.Michael Lantrip, Attorney | Accountant | InvestorMichael Lantrip

There are some distinct differences between a Limited Liability Company and Corporation:Limited Liability Company (LLC) — LLCs provide their owners with limited liability for company debts. This means that your personal assets remain untouchable to cover business debts, claims or lawsuits to a greater extent than what you invested in the company. This makes LLCs a more attractive investment because if the business falls through or has a low profit period, the investors possessions, such as a car or home, cannot be touched by creditors such as lenders or landlords.vs.Corporation — A corporation is an independent legal entity owned by its shareholders. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs. Corporations are more complex than other business structures because they tend to have costly administrative fees and complex tax and legal requirements. Because of these issues, corporations are generally suggested for established, larger companies with multiple employees.I am answering from the perspective of a business lawyer who has helped many clients incorporate their business in Delaware. Feel free to contact me [email protected] if you need to incorporate.In my course, How To Incorporate Your Business on Your Own: Quick & Easy, you will learn how to form your own Limited Liability Company (LLC) or Corporation without a lawyer, choose a business name, file a fictitious business name, file Articles of Organization or Articles of Incorporation, create Operating Agreement or Bylaws, apply for an EIN, file Statement of Information, and how to get business licenses and permits.

A corporation is an independent legal entity owned by its shareholders. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs.Corporations are more complex than other business structures because they tend to have costly administrative fees and complex tax and legal requirements. Because of these issues, corporations are generally suggested for established, larger companies with multiple employees.In my course, How To Incorporate Your Business on Your Own: Quick & Easy, you will learn how to form your own Limited Liability Company (LLC) or Corporation without a lawyer, choose a business name, file a fictitious business name, file Articles of Organization or Articles of Incorporation, create Operating Agreement or Bylaws, apply for an EIN, file Statement of Information, and how to get business licenses and permits.Join more than 600 students who have already enrolled in my course and have learned the secrets of how to incorporate on their own.