Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 4 years ago on . Most recent reply
Operating Agreement necessary?
Hello BP! My husband and I are filing for our llc in a few days and the cost of doing an operating agreement is another $200. We are on a tight budget already and I don't know if this is necessary. To my understanding, if we don't have one, then the "general rules" for Michigan llc's will apply, but I'm not seeing what's wrong with that right now. Can we file this later? Is there something else I should be considering. I know anything can happen, but I think I'm ok with splitting this business 50/50 as the default rules state.
Most Popular Reply
#3 General Real Estate Investing Contributor
- Rental Property Investor
- SE Michigan
- 5,648
- Votes |
- 3,936
- Posts
#3 General Real Estate Investing Contributor
- Rental Property Investor
- SE Michigan
I asked our attorney to change our operating agreement once and he said it was far less expensive to just open a new LLC.
But, are you sure you need an LLC? I see lots of people forming LLCs that probably don't need to. Also, if they are formed incorrectly and not maintained properly, they may not provide any protection.