Forming An LLC Question
Hope someone can advise me on this.
I am about to fill out the form from the Sec of State (Illinois). What would be a good operating agreement for an RE investor, under "Purpose for which the LLC is organized"? Would I write something like, "Buy & sell real estate"? How detailed should the statement be?
Thanks.
The Secretary of State has no interest in your Operating Agreement. His document is called Articles of Incorporation. "Buying and Selling Real" estate is sufficiently specific. In fact in Illinois you can answer this question "Any legal business purpose".
You do, however, need to have an Operating Agreement in order to establish that the LLC is operating as a seperate entity which is essential to the liablity protection reason you established the LLC to begin with.
Commercialking, could you elaborate on your last sentence? Could you give an example of an operating agreement that does what you said?
Thanks