Best Way to Do an LLC Partnership

[Ryan Alexander]

Hi everyone,

My wife and I are purchasing our first self storage facility and are partnering with our friend and his wife. My wife and I currently have an LLC, but no purchases with it yet. What would be the best way to partner up?

Should our partners create an LLC too and we'd write up a partnership between the two LLC's? Or should the four of us create a new LLC and split it 25% per person? Are there any benefits to each method? For example, is there less paperwork, more benefits, etc for one way or the other?

The four of us are also planning on buying more facilities together down the road so this would not be a one off deal. Any guidance and advice would be appreciated. Thank you!

[Bob Floss II]

@Ryan Alexander All good advice above. The only thing I'll add is to keep in mind how your structure will affect applying for additional loans down the road. If you plan to purchase additional properties, your LLC structure will dictate which members and how many need to be a part of submitting financials for the future loans.