A corporation’s share structure can ensure that a bad business partner both puts you at greater risk and gets something for nothing. Stay with an LLC to ensure fair distributions of equity and total protection.

In Part 2 of the Limited Liability Company operating agreement, I discuss the way the LLC is different from the partnership or corporation because it is not bound by a lot of case law that imposes fiduciary duties. We assess John Cunningham’s strategy for understanding the LLC Act, and how it helps us to write an effective operating agreement.

Forming an LLC by submitting Articles of Organization to the state filing agency is just the beginning. Having an operating agreement that serves as a guide to properly run your LLC is the critical factor.

The LLC was created in 1977 by an unlikely state. The Limited Liability Company has since become the entity of choice for the majority of business owners. Read the history behind the LLC to get a better understanding of how this entity works.

It is becoming prudent in many states to add an additional member to your LLC. It is important however not to appear as though you are adding a straw-man member. All LLC members must have a legitimate interest in the LLC, but what is a “legitimate interest” may be a matter of perspective.

Getting your personal life off the hook and protected behind a corporate veil is the primary reason for having an LLC. But in most real estate investment situations, the investors personal name remains upon the note rather than the loan being in the LLC’s name. I explore the ways in which to fix this, and how the banks see things.

So you own rental properties, and you need to protect them. Do you form an LLC for every single rental property? Or do you throw all the eggs into the same basket. I discuss it here.

Forming an LLC in California creates problems for those who need their business up and running but do not live near Sacramento. The STARTright submission service really helps to move this process along. California LLCs get formed much faster.

Forming an LLC is the right decision for almost any small business owner or partnership. Most business owner’s are worried about three issues when starting their business. Those issues are 1) start up costs, 2) lowering tax liability, and 3) liability protection. I will discuss how forming an LLC is the best solution for each of these.

The following is taken from one of my favorite books on tax, David J. Cartano’s Federal & State Taxation of Limited Liability Companies.  He does a great job of writing plainly, and he really covers all the basis (it is a law/tax book however and so is still steep, deep, and dry).   I am writing [...]