Is a management agreement still critical with husband and wife LLC formation? Will I be protected as a husband and wife LLC or will this be considered a single member LLC.? I know I need to consult with my team on certain things, but I would like to go in somewhat familiar with what they are saying.
The operating agreement is always critical. All the major case law for LLCs was decided based on the operating agreement.
That is too much of a risk IMO. I prefer entities to be the members.
Let me rephrase the question, what is the purpose of the management agreement? Is it just stating the duties of each member? If it is a husband and wife LLC (assuming it’s a functional marriage) it shouldn’t be all that critical correct?
I don’t understand what you mean you prefer entities to be the members.
What I would like to do is form a parent Entity that I control 100% and under that parent entity, create sub-entities in which I will form partnerships with other people or other entities for those projects. Example: I own Gypsydogg Entity, and I want to invest in an apt complex with a partner (silent or not) so together Gypsydogg Entity and Partner Entity form Gypsydogg Partner Entity to invest in that 1 apt complex. Am I making any sense?
The operating agreement defines how the LLC is to be run. It covers members, managers, agents, customers and vendors. It is ALWAYS critical unless you want an LLC that will fail when you need it. The major cases where an LLC has failed was due solely to a poorly drafted operating agreement.
I mean people are not the members. They are entities.
You would use a joint venture instead of a partnership.
Ah ok, Thanks for the input. By the way BLL where does your knowledge come from out of curiousity, are you a CPA, Attorney or someone with alot of experience?