Where do I start with creating an LLC?

[Mike Downey]

Hello,

I am closing on a home in Panama City Beach, Fl. I have 2 partners that are putting in money toward all the expenses involved in purchase and startup of this property as a short-term rental. All 3 of us live outside of FL. We plan to split the expenses and profits according to the percentage that we contributed in purchasing the property and we plan to share the burden of property management. We are looking into starting an LLC with an operating agreement that lays out the rules for distributing expenses/profit sharing etc.

I am looking for advise on where to start with generating this LLC/operating agreement? What state to create it in? Is it worth paying a service to be the registered agent or should we designate one of the partners and use their address for the LLC?

We are looking into "Legalzoom" as a starting place. 

Thank you!

[Mike Downey]

Quote from @Account Closed:

Quote from @Mike Downey:

Hello,

I am closing on a home in Panama City Beach, Fl. I have 2 partners that are putting in money toward all the expenses involved in purchase and startup of this property as a short-term rental. All 3 of us live outside of FL. We plan to split the expenses and profits according to the percentage that we contributed in purchasing the property and we plan to share the burden of property management. We are looking into starting an LLC with an operating agreement that lays out the rules for distributing expenses/profit sharing etc.

I am looking for advise on where to start with generating this LLC/operating agreement? What state to create it in? Is it worth paying a service to be the registered agent or should we designate one of the partners and use their address for the LLC?

We are looking into "Legalzoom" as a starting place. 

Thank you!

This my personal perspective, others will do things differently. I wouldn't do an LLC with people I'm not related to.

DO You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .

https://www.biggerpockets.com/forums/311/topics/1098136-do-y...


All my REIs are in an LLC! Why am I being personally sued?

https://www.biggerpockets.com/forums/926/topics/1097903-all-...


What I would do, are Joint Venture Agreements (which don't cost any money by the way, after the first one is drawn up. You can reuse them by changing a couple of lines to fit the new property (address, amount, duration, etc.) and each of you can have your own LLC if you think you want/need that, as a signatory to the Agreement or you can use your personal name.

I wouldn't use an online website to creat an LLC. An attorney is worth the money here. 

One of the most important parts is your exit strategy. Who gets to decide to sell and under what circumstances and how proceeds are to be divided. 

 Interesting I have not heard of this route. I’m going to look into this. Thank you for the input.