Partnerships - Start an LLC or have agreements between LLC's

[Lucas Cole]

Which would you suggest doing and why?

Forming an LLC with your partners for a specific property

or

Drafting a partnership agreement between the partners' individual LLC's on a specific property

Pro's and cons of each?  

[Everett Fujii]

Not 100% sure what your distinction between the two options are.

In any LLC a member/manager can be another LLC. So theoretically you can form an LLC with your partners on a specific property and your partners can use their individual LLC's to represent themselves in that LLC.

My recommendation is to use a Series LLC. You draft a master LLC agreement and you can create sub-LLC's which can be treated as individual LLC's (different partners, equity splits, etc.). This cuts down on the cost as you don't have to continue drafting LLC's and the registration is mostly painless (still needs to be registered with your State and get an EIN).

So basically, once I have the main LLC docs created, I create sub LLC's; once a good template is done it's a pretty simple find and replace to rename the sub LLC, register with the state, get my EIN, and voila I've got a new LLC to put a property and partners into.