LLC Partnership - Operating Agreement / General Questions

[Chrissy Gray]

Hi All,

I am about to close on my first investment property in Myrtle Beach, SC with 2 equal partners. We plan to create an LLC Partnership for the property.

They are both located in CA and I am in NV, but plan to relocate to CA eventually, so we're thinking setting up our LLC in CA makes the most sense - are we correct here, or should the LLC be set up in SC?

When looking for an attorney to help with the Operating Agreement, do you think one in SC would be better equipped due to state specific real estate law? Or would a CA attorney be able to help us just the same?

Any attorney referrals would be greatly appreciated as well.

Thank you!

[David M.]

@Chrissy Gray

If you are about to close....  Who or what is taking Title to the property?  Hopefully the entity you are about to form...  So, you kinda are going to have to get on this...  I assume you are getting a commercial loan?

You need to form the entity in the State where the property resides. So, in your case SC. Remember, the LLC is a legal entity formed by State, so it will only have legal status in that State. Unlike "warm blooded citizens" who have legal status across the USA, legal entities only have status in the State(s) that they are formed or registered. I'm pretty certain you will need an attorney licensed in SC to help you with the Operating Agreement...

Just realize that CA will still want to charge you the $800 annual franchise fee per LLC.

I'd be happy to chat if you'd like.  Just send me a direct message.  Good luck.