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Rental Property and LLC question
Hello. We have a SFR that we are in the process of acquiring from a family member who is no longer interested in being an out of state landlord. We have been managing it for several month now and we in the process of tranferring title from her to us. I've been all over BP and the web and still debating on whether I should do SMLLC (me) or MMLLC (me and DH). I'll say that it will NOT be held in any individual name, for a variety of reason that would probably be too time consuming to address in this forum so that can be completely removed from the equation - the issue is single member vs. multiple member. I have been taken the lead on the day to day operation of the property since we started to "manage" it (tenant interation, Section 8, city, etc.). I'm leaning toward single-member but wondering if there is a way to make sure that DH can still have a legal say in the operation if something were to happen to me and I am unable to handle the day to day operations. Basically I want him to have a say in the LLC as a back up option although he always defers to me on 98% of the decisions. Would this be accomplished by a formal operating agreement listing him as an person authorized to handle affairs of the LLC even though it's a single member LLC? It would detail who assumes responsibility if I am unable to. Or would it be best to do it a multi-member LLC? Or maybe a power of attorney for the SMLLC? The extra tax documents for the multi-member LLC are a total turn off FWIW.
If it helps in the analysis, we are not in a community property state and we file a joint tax return.
Any insight would be much appreciated! Thanks!