Start up or restart an LLC

[John Hamilton]

Hi All,

There was an LLC (family owned) that I was a managing member on, but the license has elapsed this year. It was in business for a few years (started in August 2012, i believe). It was a basic LLC used for my Dad's work as an IT contractor (SAS Programmer). I was also employed in the IT field as an IT Project Manager.

Since my Dad has passed, could I reinstate myself as the principal managing member and add another partner (to keep it officially a partnership rather than a sole proprietor)? It was originated in the State of Delaware.

OR

Would it be better to get my own LLC as a series (can also be done in Delaware, maybe Florida where I lieve, I haven't checked that) for real estate investment purposes? With a series LLC, I can add other LLCs under that (for every investment property) and maintain the master LLC as just that. All property assets and liabilities would not affect anything but the series, or individual, LLC. This also helps to keep additional properties separate, if I have more than one owned.

My purpose now is to just do fix and flips, one at a time. However, I'm sure once I get one, I will want another either right after or as I'm nearing the end of the first for resale. Eventually, if the situation fit, I will be doing buy and hold for some cashflow.

Any ideas or suggestions with others who have faced this situation?

[Chris Martin]

Restarting an LLC is perfectly legal. The real question is what does your operating agreement look like? The "work" in setting up (or restarting) an LLC is the OA. Multi-member LLCs can be tricky even with family as members. Your OA could be completely different for a flip company than for an IT company. The series LLC makes sense, IMO, for what you are doing. That seems like the best route.