LLC - Operating Agreements

[Jenny Tai]

I'm considering setting up a LLC to invest in real estate with friends. I have a few questions around the operating agreement and will very much appreciate your insights.

1. What are the conditions/clauses to leave the LLC ?

2. How will the LLC use the profit generated by the investment? Does profit get distributed to all LLC partners? Or does profit go into a common pool for future investment?

3. In the event that one member needs to cash out and the other members cannot afford to buy out the exiting share, what will happen in that case?

4. What type of insurance should we buy for the LLC?

5. What are the rules to buy the house? Do all the parties have to be there to review and sign the paper? If one person objects the house, does that mean the purchase of the house will still proceed?

6. What will happen to LLC if any of the members declare bankruptcy?