LLC Set Up Question

[Steph C.]

Hello,

I have a question about setting up an LLC for wholesaling. Should my husband and I both be listed on the same LLC so we both can sign at closing? I am thinking maybe we both should be, but I assume that means we'd both need to attend all closings, or does it depend on our titles in the company? I would prefer, if possible, if either of us could sign as members of the same LLC at closing.

I almost thought of us each having a single member LLC, but the cost (before legal fees) in MA is $590 per LLC, so I don't want to do that until I need to.

Evenually, I may set up a separate LLC for rentals and maybe do wholesaling under an S Corp, if that turns out to be our primary income source.

Thanks,
Steph

[J Scott]

Steph -

Once you organize your LLC, you should have an Operating Agreement that outlines all the roles, responsibilities and limitations that are imposed on the members, managers and officers of the company.

It is this document that will indicate who can (and who must) sign for the company. It could state that only one signature is needed; it could state that multiple signatures are needed. You can put whatever you want in that document to define how signature authority (and other matters) are handled in your company,

For reference, the closing attorney should ask to see a copy of your Operating Agreement at -- or before -- closing to verify who needs to sign.