Form LLC in Louisiana?

[Marcus Guidry]

Completely new. I have no properties yet, but I am in the process of teaming up with two others for the purpose of investing in a triplex or four-plex. The other two will be investing more money than me, but I will do most of the managing and networking. My question is this:

Should we form an LLC (in Louisiana) to buy our first property? If we do form one, and we all become 1/3 owners, does that mean revenue will be split into thirds? Or do we decide that? And in simple terms, how would taxes work if we make an LLC?

Any help or advice is greatly appreciated!

[Robert Leonard]

The answers to those questions are very simple for an individual but can get real complicated with 3 partners.  Much of the answer is negotiable when you talk about profit splits versus contributions.

You need a good attorney to prepare a well thought out operating agreement that will cover all of those concerns.