Funding a LLC

[Wai Fung]

Does anybody have any experience with funding a LLC? Say that I open a LLC in XYZ state and fund it through a third party. The third party will receive a return of course. I want to use the LLC to have the capital to fund future real estate purchases. Is this possible?

[Jon Holdman]

Why would a third party be involved in funding? You create the LLC. You open a bank account. You deposit your money into the LLC's bank account.

Now, if you mean you have investors, then you should create a rock solid operating agreement and do the private placement paperwork. Then, you will get checks or wires from your investors and in exchange given them units in your LLC. This is a non-trivial amount of paperwork. You MUST have good legal council. Expect to spend around $20-30K to do this legal work for a private placement.