Amazing info I just updated my operating agreement. I do have one question, since I am operating an online hair store would you say everything in this video still apply or is the information shared targeted for a select group of LLC holders? If you have a video on how the online business world differs from that of the outside world, please feel free to share. Thank you :)
Going to setup a blog with a family member under 18. I’ll bank and head it and engineer the technical pieces but won’t provided the day to day content. Avoiding pitfalls in setup is key. Could you provide a source initial llc setup source you trust to new business entries?
1. Manager Managed 2. No forced Distributions (to not distribute on an annual basis but have discretionary authority to make those distributions whenever) (no language in there that forces you to make annual distributions incase you are ever sued and the one that takes interest will want the annual forced distribution of the companies profits) 3. Non-Pro Rata Distributions (In the distribution clause I would like to have non-pro rata distributions incase I add members in the future) 4. Charging Order language (In an event a member is under duress. They can't take my interest from me in case the company gets sued, if a court tries to award their interest that they would become an assignee if a judgment is entered against me. The person that is awarded my interest (if ever sued) they don't get control over the company) 5.Restrictions on transferability Language (That i can restrict who can become a member of the LLC to make it difficult for a creditor or anyone to take my interest of the company) (Example, a member transfers their interest to someone else and I do not know who that person is. I want to restrict that from happening unless I agree to the transfer) 6. Proper Tax Provisions Language inline with my LLC (If taxed as S-Corp or C-Corp) 7. No right to return of capital (Incase a creditor or anyone suing me takes my interest. They will want a return of capital that I have invested but I want to have NO RIGHT TO RETURN OF CAPITAL language in the operating agreement) 8. Include Appointment of officers Provision Language (Allow me to call myself President, Secretary, CEO, Etc. to third parties and be able to appoint officers )
WHEW! That was probably the most informative video I've watched all year! Super powerful information that could make or break a business' future. Thank you for taking the time to invest in you viewers. You saved us a lot of time, headaches, heartaches, and MONEY! As always, thank you. I LOVE your channel, professional and straight to the point!
Best video I watched in RUclips so far. You just helped me to avoid two mistakes and in the comments you also gave me a solution to another one. You are very clear for those who don't get along with lots of legal concepts. I just became member of your channel. Thank you Clint.
This information is gold. I went through an online OA builder, but I had no idea the reasoning behind the questions, or what the best answers were. Thanks so much for this!!
I am SO GRATEFUL your video came across my feed. What a relief it has been learning from you. Of course, now I'm a follower and a fan. Mama said I should have been an attorney, I see that now, back then I wouldn't get off my horse long enough to make that happen. Thanks again Clint.
I have watched this video and many others many times as it has very helpful information on how to avoid some of the mistakes when setting up an LLC. Thank you for all this value information.
Great content. 💯 I was a Corp Acct for more than 30 years. I appreciate your level of thoroughness, which definitely comes from many years of experience. Many of the younger attorneys, accountants, etc... are familiar with "the mechanics" of comleting an operating agreement. However, they may inadvertently miss important aspects that could be very costly to both personal and business finances in the future.
Great Video. The best one on this topic. Would you kindly clarify on a few points: 1) Do we want "Charging Order" in the agreement, or do we want "No Charging Order"? 2) "Improper tax provisions": Do we want to include or not to? 3) Do we want "Officer appointment provision" or "No officer appointment provision"? Thank you!
Thank God for the internets and RUclips! This channel is a godsend, and the information, is powerful! This is a real experienced lawyer talking right here, not an amateur! I appreciate this executable information sir! Thank you!
Thank God ....This channel is a godsend, and the information, is powerful! This is an experienced lawyer talking right here, not an amateur! I appreciate this executable information! Thank you! please do makevideos for creatives also outis real-estate....
WOW! Subscribe immediately. So informative and stated in a way that is easy to comprehend and apply, with an understanding of WHY it's important. Thank you for this.
Yes you should set one up and most likely elect S tax status. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession
Venturing into the trading world without the help of a professional trader and expecting profits is like Turing water into wine, you would need a miracle that why I trade with Mrs /Patrcia47 TELE~GRAM her skills are Exceptional
This is the video I’ve been waiting for now I finally understand operating agreement and I’m ready to pick up the phone and call Anderson to do business with him :)
Venturing into the trading world without the help of a professional trader and expecting profits is like Turning water into wine, you would need a miracle that why I trade with Mrs /Patrcia47 TELE~GRAM her skills are exceptional
Regarding LLC…I plan to be sole person in my LLC. My business: I license ideas (patented ideas). My question: Do I still need an operating agreement?….and if so, which of these 8 key points should I address in it? (Your video: 8 Stupid Mistakes in an LLC Operating Agreement)….thanks, Mike
@@michaelconde6748 It would be $1500 plus state filing fees. We file the LLC, consult on the appropriate entity setup and tax status, obtain your EIN, and draft the operating agreement. You can contact my assistant Deborah Lewis and dlewis@andersonadvisors.com if you are interested. Thanks for watching.
Hi Clint - I’ve just recently discovered your videos, you’ve answered so many questions I had and still I have more. You’re content is just what I’ve been looking for!!!! Thank you so much. I’ve actually booked a conference with your Sr. Advisor and attended your webinar last Saturday and immediately signed up for Platinum. Since then, I’ve been trying to navigate and find more answers but it hasn’t been as easy as I thought it would be. The concept is most excellent but the execution, in my opinion, is a bit lackluster. I keep coming back to rewatch your videos to get answers, specifically this one because I’m one of those people you mentioned that made mistakes when forming my LLC. I’m just in the beginning stage of a larger plan in my business endeavor and need guidance and handholding from someone like you. I’m hoping to find that in your advisor. Maybe it’s me being impatient or maybe the process and system Anderson Advisor has set up needs a little tweaking, it’s new to me so I’m giving it the benefit of the doubt. I have still so many questions and pulling all the pieces together of what I’ve done and what I’m trying to do & envision is daunting. I need more than 30 minutes here and 15 minutes there. For continuity, and to get working on the right path you teach about assets protection and anonymity for future business ventures, real estate investments, and other deals; to somehow incorporate/correct the mistakes I’ve made with a proper Operating Agreement and maintain the LLC I’ve created (instead of forming a new one as I’ve already established a great credit file on it with multiple credit lines), what would be your advice on how to work with your company and what is a realistic timeframe I should be expecting for the total transformation of setting the right structure for my companies?
If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession Start with a strategy session and then we can give you a timeline depending on the work that is required. It could take 30 days or in some instances several months.
@@ClintCoons @KrisnaRoss I agree with the sentiments of Krisna. After listening to Clint and Toby at a seminar felt very confident that Anderson was the right place and we joined as a platinum member. After the initial Blueprint path meeting we were shuttled to a different intermediate and then individual staff take care of different aspects of your situation. One problem that newbees like me have is that we do not know what we do not know. We were always reexplaining our situation and tried to ask for what we thought we wanted but the options that are possible that we do not know of and the ramifications of those choices or what the wrong choices would be were not explained in a cohesive overarching manner. -- Thanks for your and Anderson's help! we're getting there.
Hey Clint...Can you do a Asset Protection and Tax Strategy video for note investors. This type of business forecloses on homes and we need to learn how to protect our assets, anonymity and set up the right tax structure? Thanks
He has so many videos with all of that information. Start watching his videos and you might finish them in a month of binge watching 😂 but seriously every single one is cram packed with knowledge. I have been watching his videos for around 4 years and never cease to be amazed every time
Hi Clint. You provide excellent content. When you explained the first issue in your video, you talked about a person deciding whether the llc was going to be member managed or manager managed, and you mentioned that even though the person is going to be the member and the manager, you still like to set them up as manager managed because it tells everyone, that this is the person that has control. My question is the following: Could you apply this same reasoning when you use a Wyoming llc holding company as the member and manager of the llc instead of a person? In other words, could you state the following: "Even though the Wyoming llc holding company is going to be the member and the manager, I still like to set them up as manager managed because it tells everyone, this Wyoming llc holding company has control of the company." Whenever you mention the Wyoming holding company strategy in your other videos, you always say that the state specific llc will be member managed by the Wyoming llc holding company. therefore, i wanted to know if you could apply the above mentioned reasoning from this video to an llc held by a Wyoming llc holding company, where you choose to have the llc set up as manager managed by the Wyoming llc holding company.
Hi Clint - thank you so much for these videos! One question around 6:00. If a court tries to award a member's interest, who becomes an assignee? The company?
Thank you for this valuable information. Does a Single Member LLC holder apply the same strategies to their operating agreement? If there are some differences, could you please make a video that explains it? Thanks! 😊
Very informative and I enjoyed the teaching style. I do have one question and maybe it is a dumb question. Once you write this operating agreement - what do you do with it? Is it filed somewhere?
Great Video! Quick question relating to mistake #8. Appointing yourself multiple titles allowed? The example mentioned appoint yourself President as to not refer to the member . So can you appointment yourself President, Principle, AND Director? (Or some other combination of multiple titles?) Thanks in advance.
Fantastic video ! Thanks a lot, I learned a ton ! Do you happen to have examples of language for each of these points ? (Maybe except 1 - 2 - 6 which is fairly obvious)
Hey Clint, I'll be forming an LLC' as a wholesaling exit strategy, where I sell the LLC prior to closing rather than doing a double closing. I've always appreciated the anonymity that Land Trusts provide but title companies don't want to close on land trusts in California. So I'm not sure if I should elect the LLC to be member or manager managed.
I would use a Wyoming LLC that is manager managed so the title company can’t see who is involved with the company. The reason I state this has to do with what information is available on the secretary of state’s website. If you use CA and do not file the statement of information you could make it work but WY does not ask for the names of the members or managers so it is my preference. When you sell the LLC, the buyer will restate the operating agreement to list himself as the manager and member. When title requests a copy of the opera taking agreement your name will not be associated with it and this will help the buyer finalize the transaction.
I should mention I live in Michigan but just wholesale houses in California. I was planning to file articles of organization in Michigan because it's only $50 here. I'll take your advice on filing in Wyoming though, thanks!
Thanks for the information Clint. Re Forced Distributions - My Operating Agreement states annual distribution of net cash flow. It also states if/when, timing and amount is at the Manger's sole discretion. So... does it provide the protection your video discusses? Section 6.02. Annual Distributions of Net Operating Cash Flow. After reserving for the working and other capital needs of the Company, the Manager shall distribute Net Operating Cash Flow annually. These distributions if or when made shall occur at such times and in such amounts as the Manager may determine in the Manager’s sole and absolute discretion.
You are required to make annual distributions of net cash flow with the paragraph you sent me. The language should not contain shall it should read "may".
Okay, here's a question many are wondering: Is there is any advantage to forming (a parent-subsidiary structure) when one *only owns one* LLC? For example, would there be any legal advantages to forming a general umbrella LLC as a parent, to put a current LLC under and any future LLC's that may be created?
Excellent video! I hear a lot on the internet as Nevis LLC being the ultimate protection. I've seen your other videos on Wyoming LLC and Manager managed and member managed LLCs. Does the Wyoming LLC provide the same protection if setup properly? Thanks
I have to watch the video again because the way you wrote the list were contradictions sometimes like member managed which is a no but restrictions on transfer is a yes. Confusing a bit.
Restrictions on transfer prevent someone from gifting away their interest in the LLC without your approval. The management is a different issue and it deals with who has control over the company. I hope this helps clear up any confusion. Thanks for watching.
Hi Clint, in OA of Cali LLC that has manager (managed) a holding WY LLC in that case, member should be WY LLC or Personal Name with Cali agent address? To buy rentals Holding Manager Managed LLC or Personal Name in OA?
Hi, watched your video and it was the most informative one i have seen yet! Do you have an operating agreement template that I can purchase from you? If not, can you recommend one. Thank You!
If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss or you can send me an email at ccoons@andersonadvisors.com, and I will have someone contact you.
Hey Clint loved the video!! I wanted to ask if you had a downloadable edition of a base operating agreement that we could use?! I’m looking to act as my own registered agent as I set up my LLC but don’t know where to find an operating agreement of this caliber to use! Thank you!!
Hi Clint, I've watched this video multiple times, and am writing up my Operating Agreement for a JV LLC manager-managed (two managers: my corp, and my partner's corp). Some of the "8 stupid mistakes" are not mentioned at all in the free template I am using online . There is an option for additional clauses on the form. If the mistakes above are not mentioned at all, should I just leave it, or add statements to the additional clauses as such: 1) Company agreement will not have forced distributions. 2) Company agreement will include Non Pro Rata distributions. 3) Company agreement will not have charging order language. 4) Company agreement will include restrictions on transfer of interests. 5) Company agreement will have no right to return of capital. 6) Company agreement will have no officer appointment condition. If I should add these, please let me know if I screwed up on any of the 6 I listed. Another poster had asked you if he should have NO net to all of the mistakes, except Non Pro Rata and you said yes to him. After listening to your video again, it sounds like you're saying that we WANT an officer appointment condition, so maybe that should be: Company will have officer appointment condition???
A JV LLC is a different animal all together and many of the provisions you need in your personal LLC will not translate into a JV LLC. I would recommend you consult an attorney to draft your operating agreement. I have seen far too many JV deals go bad.
Thanks for the input. A question: You wrote "No Officer appointment provision," but your explanation says that you do want an officer appointment provision. What did I miss?
The mistake is that when an officer provision is NOT included. His language included a double negative. I had the same question..had to replay a few times for clarity therefore be sure to include the provision
Very informative video...love it :) I have questions: If single owner llc, non-prorata, restriction on transfer clauses apply to it? Plus, is it still ok to use manager managed for 1 owner llc? I am thinking those clauses apply for multi owners. Also, do you have a service just for operating agreement only?
I'm a new investor in real estate as in starting from scratch and ill be be building my portfolio aggressively however this information is golden sir thankyou very much. Wish you were in my town to hire for what im about to embark in for your professional guidance.
Oh I wish you could make my operating agreement after watching this, I am definitely using these though. As I am forming an LLC in around a month, I am 75% owner.
@@ClintCoons Can you help anyone with an operating agreement legally if services are paid for? Or is it restricted by state for you? I am using Zenbusiness to file most likely as it is way faster and cost effective. Thank you for your time and I hope you have a great day.
In the Still of the filled in the attorney of the operating agreement in the property manger in the LLC IN THE STATEMENT THE FORCED RATA ARE IN PRO RATA DISTRIBUTION THE CHANGING LANGUAGE NO RESTRICTORS OR TRANSFERS IN The reception revision description restrictors are in there is no officer appointment provision😊😊🎉🎉🎉
Great video, much appreciated! I’m about to download the link. Can anyone let me know, I assume all these tips are already including in the link for the operating agreement? Thanks. I’m trying to setup a one member LLC so I want to assure that I make it as iron clad as I can while maximizing my taxes advantages. I’m in California but looking towards a Wyoming, Delaware setup but operate in California. Any tips for setting up is appreciated. Thanks.
Hey Clint, thanks again for this vid. Question 1 - would the "Restrictions on Transfers" language conflict with what you stated in another video about creating an Assignment and transferring the LLC into, say, a Living Trust? Since this "Restriction on Transfers" is designed to make it difficult to transfer an LLC's interest, would it make it naming the Living Trust as the owner more difficult? Question 2 - if it's a Manager-Managed LLC, how would the Officer Appointment provision work? Would the Manager or the sole Member (in my case) have the authority to designate Officers?
No one knows if you transfer an LLC into a living trust via an assignment. It is not recorded anywhere. #2 really no need to use officers in a manager managed but if you wanted to name an officer the managers would pass a resolution appointing an officer.
I am planning to create a single member LLC as a health care provider. These mistakes all appear to me to be specific to multi-member LLC's, is that correct? Do any of these 8 mistakes apply if creating a single member LLC? Are there any issues I need to worry about if starting a single member LLC?
I would definitely want these in my LLC Manager managed No forced Distributions Charging language provisions Tax provisions inline with what LLC you want to run
thanks for the amazing information hope to answer my question. is it necessary to add how much the owner will contribute? and how it will help him in the future? for single LLC
I’m thinking about starting a smllc taxed as a c corp and I’d love to see a longer version of this video could I maybe pay you to create a longer version of this?
Is an S corp rental property still protected in a revocable trust if you are presented with an injury lawsuit. I read something that said the revocable (or changeable ) trust can make entity protection null and void. Thanks for any input you can give.
I wish you said 2:33 from the start haha. Also if the Parent Co is WY LLC, is Change Order Language even necessary since WY would provide this protection to being with? Further, if it's a single-member LLC and the In-state and WY doesn't require an Operating Agreement, should I even bother with one? Thanks for sharing this video!
Absolutely you need an operating agreement. The charging order language is important because it reinforces your election to keep you interest from being assigned to a creditor. Further imagine what could happen if a state court asserted jurisdiction over a creditor claim against your interest in a WY LLC and you do not have an operating agreement to rebut it.
As for the Officer provision, should it be both in the WY holding company’s operating agreement and in a a subsidiary LLC’s agreement? Let’s say, subsidiary LLC’s agreement says that member(WY) is responsible for management of this subsidiary, and Member appoints a certain person President of this subsidiary. Would that be sufficient?
Hi Clint, on your suggestion #5--- Is it mandatory that you put a tax provision on the OA? What if I want to be taxed as a disregarded entity first and then change to S Corp down the road. This means I would have to amend my OA whenever i change my tax status? Is it better to keep it silent on the matter.
A disregarded entity is silent for the most part. Typically it contains one paragraph indicating the entity is disregarded. If you want to switch to an S-Corp, yes I suggest you amend your operating agreement to incorporate the tax provisions. I think this is important from an audit perspective.
Thank you so much for info. I have a single member LLC. Does it apply to me or only for multi member LLC. Im in Alabama If this is relevant for a single member LLC, I will need to make sure I have it set up correctly. Did I interpret correctly? 1 set up as a manager manage 2. no forced distribution 3. Set up as a non pro rata distribution 4.no charging language 5. no restrictions on transfer of interests 6. make sure tax provision is lined up with LLC (I still need to understand how it needs to be worded), 7. no right to return of capital 8. And no officer appointed provision Is this correct?
Set it up as follows: Manager managed if you are not looking for anonymity No forced distributions Allow for pro-rata distributions Charging order language Restrictions on transfer of ownership Not sure on the tax election you plan to make for your LLC so cant answer this one You should not have a right to return of any capital you contribute to your LLC You do not need officer provisions with this structure.
Clint, before creating an LLC, can a person acquire a registered agent and use that information for acquiring a EIN? Are umbrella LLC structures more protective than having individual LLC corporations?
An RA can not be listed as the responsible party for your entity because they do not have the necessary ownership or control. Individual LLCs owned by an umbrella LLC (Wyoming Holding LLC) is the preferred structure.
Claim Your FREE 45-minute consultation to receive business planning tips and asset protection. 👉 aba.link/lgo
Thanks do you provide copies of transcribe words ,templates
Amazing info I just updated my operating agreement. I do have one question, since I am operating an online hair store would you say everything in this video still apply or is the information shared targeted for a select group of LLC holders? If you have a video on how the online business world differs from that of the outside world, please feel free to share. Thank you :)
@@deannalove9073 An online business in which you are the sole owner would not need every provision I discuss in this video.
Going to setup a blog with a family member under 18. I’ll bank and head it and engineer the technical pieces but won’t provided the day to day content. Avoiding pitfalls in setup is key. Could you provide a source initial llc setup source you trust to new business entries?
@@iynobhetter Iyno we can assist. See the link in the show notes to set up a strategy session.
1. Manager Managed
2. No forced Distributions (to not distribute on an annual basis but have discretionary authority to make those distributions whenever) (no language in there that forces you to make annual distributions incase you are ever sued and the one that takes interest will want the annual forced distribution of the companies profits)
3. Non-Pro Rata Distributions (In the distribution clause I would like to have non-pro rata distributions incase I add members in the future)
4. Charging Order language (In an event a member is under duress. They can't take my interest from me in case the company gets sued, if a court tries to award their interest that they would become an assignee if a judgment is entered against me. The person that is awarded my interest (if ever sued) they don't get control over the company)
5.Restrictions on transferability Language (That i can restrict who can become a member of the LLC to make it difficult for a creditor or anyone to take my interest of the company) (Example, a member transfers their interest to someone else and I do not know who that person is. I want to restrict that from happening unless I agree to the transfer)
6. Proper Tax Provisions Language inline with my LLC (If taxed as S-Corp or C-Corp)
7. No right to return of capital (Incase a creditor or anyone suing me takes my interest. They will want a return of capital that I have invested but I want to have NO RIGHT TO RETURN OF CAPITAL language in the operating agreement)
8. Include Appointment of officers Provision Language (Allow me to call myself President, Secretary, CEO, Etc. to third parties and be able to appoint officers )
I can’t believe he’s giving this information for free! This is well covered and ingenious!
😀
The catch is in what he isn't giving away for free. This is just the bait needed to get fish on the hook.
@@gaiustacitus4242still free info. Whether or not u want to trace with him is a diff debate
@@gaiustacitus4242 What would you expect then?? A professional to do the rest for free ??? At least He's giving some good heads up.
@@JennyRasmuson You can get everything he's omitting for free, including much that he isn't even aware of.
WHEW! That was probably the most informative video I've watched all year! Super powerful information that could make or break a business' future. Thank you for taking the time to invest in you viewers. You saved us a lot of time, headaches, heartaches, and MONEY! As always, thank you. I LOVE your channel, professional and straight to the point!
Thanks
& coming straight from a legally qualified experienced professional! Presentation is too good too in every video. Thanks Mr Coons
It would be nice if you had a example template of these provisions for those of us trying to create our own Operating Agreement
Best video I watched in RUclips so far. You just helped me to avoid two mistakes and in the comments you also gave me a solution to another one. You are very clear for those who don't get along with lots of legal concepts. I just became member of your channel. Thank you Clint.
Great to hear! Thanks for becoming a subscriber.
This information is gold. I went through an online OA builder, but I had no idea the reasoning behind the questions, or what the best answers were. Thanks so much for this!!
Glad it was helpful!
I am SO GRATEFUL your video came across my feed. What a relief it has been learning from you. Of course, now I'm a follower and a fan. Mama said I should have been an attorney, I see that now, back then I wouldn't get off my horse long enough to make that happen. Thanks again Clint.
Lisa Keene
Thanks for watching.
I have watched this video and many others many times as it has very helpful information on how to avoid some of the mistakes when setting up an LLC. Thank you for all this value information.
Antonio AA
Thanks for watching.
Great content. 💯 I was a Corp Acct for more than 30 years. I appreciate your level of thoroughness, which definitely comes from many years of experience. Many of the younger attorneys, accountants, etc... are familiar with "the mechanics" of comleting an operating agreement. However, they may inadvertently miss important aspects that could be very costly to both personal and business finances in the future.
Well said!
@@ClintCoons is there a book i can read on these things
Great Video. The best one on this topic. Would you kindly clarify on a few points: 1) Do we want "Charging Order" in the agreement, or do we want "No Charging Order"? 2) "Improper tax provisions": Do we want to include or not to? 3) Do we want "Officer appointment provision" or "No officer appointment provision"? Thank you!
You want charging order and officer provisions.
Thank God for the internets and RUclips! This channel is a godsend, and the information, is powerful! This is a real experienced lawyer talking right here, not an amateur! I appreciate this executable information sir! Thank you!
Wow, thank you!
These are the answers to the questions I couldn't formulate.
Just finished listening to you for the first time. I became a member. You are a wonderful teacher/ professor.
Thanks and welcome
I literally have watched llc videos for just this month as a filter. Best video so far!
Wow, thanks!
Thanks Clint I just opened an LLC and this video gave me a clear idea on what to add and expect.
Glad it helped!
Just subscribed, I love the impactful information. It's a breath of fresh air to hear someone who's an effective communicators.
Thanks Antonio.
Thanks you for these wonderful tips. I made two of those mistakes already. Luckily I am still in the beginning stages so hopefully I can change that.
Glad it was helpful!
Doesn't anyone realize how helpful these tips are? Thank you sir
Nice of you to say so. Thanks for watching.
You're certainly welcome
This guy is the real deal. Ask your local attorney about this and see how of these he or she can even list
The information that you give is so thorough it makes me feel invincible thank you for everything
You are welcome. Thanks for watching.
How do I become a student I really need help
@@myuniqueunicorn If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Harvard may still have openings 😂
Outstanding direct to the point priceless information for free. Clint may you be continually blessed you absolutely rock!!!
@user-kk3kc5zq9r
Thanks for watching.
Thank God ....This channel is a godsend, and the information, is powerful! This is an experienced lawyer talking right here, not an amateur! I appreciate this executable information! Thank you!
please do makevideos for creatives also outis real-estate....
Wow, thank you
Professional and passionate. Quantified! Thanks so much for taking your time out for us all.
Thanks for watching!
Yeah very good points... Never pin yourself down with rules when you can leave it open ended because you control it anyway. Awesome info!
Exactly!
upcoming 19 year old real estate investor. Your videos help me a ton, just subbed.
Fantastic!
WOW! Subscribe immediately. So informative and stated in a way that is easy to comprehend and apply, with an understanding of WHY it's important. Thank you for this.
MeL G
Thanks for watching.
This is by far, the best video I've seen about this topic.
thanks for watching and the comment.
Great content, Clint. The mistakes one can make on an LLC in their state are HUGE. Thanks for bringing those points to our attention!
Thank you for the information. I'm trying to decide if I need a LLC for my auto detailing business. Right now I'm a sole proprietor.
Yes you should set one up and most likely elect S tax status. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Thank you for sharing this very important info for those of us with no experience.
Glad it was helpful!
Just was scrolling and seen this. wow! Thank you! very informative on mistakes on llc agreements! Subscribed.
Rank On Top
Thanks for watching.
Thank you so much for publishing these videos, they are giving me a lot of information to set up the road map to form my company.
Glad to help!
Thank you, for the information. It's a blessing!!
THANKS A MILLION!!!
I had no choice but to subscribe, since you answered a lot of unasked questions.
Thanks for the sub!
You are amazing and so educated. Knowledge is priceless, thank you for sharing what you know with everyone.
You are so welcome
Venturing into the trading world without the help of a professional trader and expecting profits is like Turing water into wine, you would need a miracle that why I trade with Mrs /Patrcia47 TELE~GRAM her skills are Exceptional
Great info. Makes sense of the legal terminology most of us are not familiar with.
Thanks
This is the video I’ve been waiting for now I finally understand operating agreement and I’m ready to pick up the phone and call Anderson to do business with him :)
Venturing into the trading world without the help of a professional trader and expecting profits is like Turning water into wine, you would need a miracle that why I trade with Mrs /Patrcia47 TELE~GRAM her skills are exceptional
Really love the 8 outlined mistakes. Would love to watch another video on the many other mistakes. Just subscribed. 🤜✅🤛. Thanks a lot.
Thanks for the sub!
Regarding LLC…I plan to be sole person in my LLC. My business: I license ideas (patented ideas). My question: Do I still need an operating agreement?….and if so, which of these 8 key points should I address in it? (Your video: 8 Stupid Mistakes in an LLC Operating Agreement)….thanks, Mike
Yes you do need an operating agreement and some of the points would not necessarily apply e.g., restrictions on transfer, pro-rata distributions.
@@ClintCoons Well, then are you able to create one for me?…and if so, how much will you charge me?….and btw, thanks for your quick reply.
@@michaelconde6748 It would be $1500 plus state filing fees. We file the LLC, consult on the appropriate entity setup and tax status, obtain your EIN, and draft the operating agreement. You can contact my assistant Deborah Lewis and dlewis@andersonadvisors.com if you are interested. Thanks for watching.
Hi Clint - I’ve just recently discovered your videos, you’ve answered so many questions I had and still I have more. You’re content is just what I’ve been looking for!!!! Thank you so much. I’ve actually booked a conference with your Sr. Advisor and attended your webinar last Saturday and immediately signed up for Platinum. Since then, I’ve been trying to navigate and find more answers but it hasn’t been as easy as I thought it would be. The concept is most excellent but the execution, in my opinion, is a bit lackluster. I keep coming back to rewatch your videos to get answers, specifically this one because I’m one of those people you mentioned that made mistakes when forming my LLC. I’m just in the beginning stage of a larger plan in my business endeavor and need guidance and handholding from someone like you. I’m hoping to find that in your advisor. Maybe it’s me being impatient or maybe the process and system Anderson Advisor has set up needs a little tweaking, it’s new to me so I’m giving it the benefit of the doubt. I have still so many questions and pulling all the pieces together of what I’ve done and what I’m trying to do & envision is daunting. I need more than 30 minutes here and 15 minutes there. For continuity, and to get working on the right path you teach about assets protection and anonymity for future business ventures, real estate investments, and other deals; to somehow incorporate/correct the mistakes I’ve made with a proper Operating Agreement and maintain the LLC I’ve created (instead of forming a new one as I’ve already established a great credit file on it with multiple credit lines), what would be your advice on how to work with your company and what is a realistic timeframe I should be expecting for the total transformation of setting the right structure for my companies?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Start with a strategy session and then we can give you a timeline depending on the work that is required. It could take 30 days or in some instances several months.
@@ClintCoons @KrisnaRoss I agree with the sentiments of Krisna. After listening to Clint and Toby at a seminar felt very confident that Anderson was the right place and we joined as a platinum member. After the initial Blueprint path meeting we were shuttled to a different intermediate and then individual staff take care of different aspects of your situation. One problem that newbees like me have is that we do not know what we do not know. We were always reexplaining our situation and tried to ask for what we thought we wanted but the options that are possible that we do not know of and the ramifications of those choices or what the wrong choices would be were not explained in a cohesive overarching manner. -- Thanks for your and Anderson's help! we're getting there.
@@ericfine325 Thanks Eric.
Hey Clint...Can you do a Asset Protection and Tax Strategy video for note investors. This type of business forecloses on homes and we need to learn how to protect our assets, anonymity and set up the right tax structure? Thanks
Thanks for the suggestion. I will add it my list.
A must watch!!!! When creating a company.
Semone Ugbomah
Thanks for watching.
Would love to see a continuation of some other important things to include. Both for anonymity and Common LLC. Love your videos
Will do!
He has so many videos with all of that information. Start watching his videos and you might finish them in a month of binge watching 😂 but seriously every single one is cram packed with knowledge. I have been watching his videos for around 4 years and never cease to be amazed every time
Love your videos!! Have watched several today! So informative!! Thank You!
Absolute rock solid content. Thank you.
WOW! Thank you so much for sharing your valuable expertise! We really appreciate your willingness and generosity! Thank you!
DC Miracles
Thanks for watching.
Also add no requirement for corporate annual meetings, do as needed ok?
Great point.
THANK YOU very much for this free education 🙏 God bless you for sharing your knowledge 🙏
So nice of you
Hi Clint. You provide excellent content.
When you explained the first issue in your video, you talked about a person deciding whether the llc
was going to be member managed or manager managed, and you mentioned that even though the person is
going to be the member and the manager, you still like to set them up as manager managed because it
tells everyone, that this is the person that has control.
My question is the following: Could you apply this same reasoning when you use a Wyoming llc holding
company as the member and manager of the llc instead of a person? In other words, could you state
the following: "Even though the Wyoming llc holding company is going to be the member and the
manager, I still like to set them up as manager managed because it tells everyone, this Wyoming llc
holding company has control of the company."
Whenever you mention the Wyoming holding company strategy in your other videos, you always say that the
state specific llc will be member managed by the Wyoming llc holding company. therefore, i wanted to
know if you could apply the above mentioned reasoning from this video to an llc held by a Wyoming llc
holding company, where you choose to have the llc set up as manager managed by the Wyoming llc
holding company.
Hi Clint - thank you so much for these videos! One question around 6:00. If a court tries to award a member's interest, who becomes an assignee? The company?
The creditor
Thank you for this valuable information. Does a Single Member LLC holder apply the same strategies to their operating agreement? If there are some differences, could you please make a video that explains it? Thanks! 😊
They are similar but I will create a video around the topic.
Very informative and I enjoyed the teaching style. I do have one question and maybe it is a dumb question. Once you write this operating agreement - what do you do with it? Is it filed somewhere?
You keep it in your records.
In also researching info. Business recovery binder is a Must in this case. Look up business recovery binder & it's used for.
Great Video!
Quick question relating to mistake #8. Appointing yourself multiple titles allowed? The example mentioned appoint yourself President as to not refer to the member . So can you appointment yourself President, Principle, AND Director? (Or some other combination of multiple titles?)
Thanks in advance.
Just president
For a newbie to the game this was very necessary and informative.....
Fantastic video ! Thanks a lot, I learned a ton ! Do you happen to have examples of language for each of these points ? (Maybe except 1 - 2 - 6 which is fairly obvious)
Hey Clint, I'll be forming an LLC' as a wholesaling exit strategy, where I sell the LLC prior to closing rather than doing a double closing. I've always appreciated the anonymity that Land Trusts provide but title companies don't want to close on land trusts in California. So I'm not sure if I should elect the LLC to be member or manager managed.
I would use a Wyoming LLC that is manager managed so the title company can’t see who is involved with the company. The reason I state this has to do with what information is available on the secretary of state’s website. If you use CA and do not file the statement of information you could make it work but WY does not ask for the names of the members or managers so it is my preference. When you sell the LLC, the buyer will restate the operating agreement to list himself as the manager and member. When title requests a copy of the opera taking agreement your name will not be associated with it and this will help the buyer finalize the transaction.
I should mention I live in Michigan but just wholesale houses in California. I was planning to file articles of organization in Michigan because it's only $50 here. I'll take your advice on filing in Wyoming though, thanks!
Thank you for this valuable information without any fluff. I appreciate this. I searched for it and you popped up. Wallah 🙏🏻
Glad it was helpful!
Thanks for the information Clint. Re Forced Distributions - My Operating Agreement states annual distribution of net cash flow. It also states if/when, timing and amount is at the Manger's sole discretion. So... does it provide the protection your video discusses?
Section 6.02. Annual Distributions of Net Operating Cash Flow. After reserving for the working and other capital needs of the Company, the Manager shall distribute Net Operating Cash Flow annually. These distributions if or when made shall occur at such times and in such amounts as the Manager may determine in the Manager’s sole and absolute discretion.
You are required to make annual distributions of net cash flow with the paragraph you sent me. The language should not contain shall it should read "may".
@@ClintCoons Thank you. You are truly the best!
Okay, here's a question many are wondering: Is there is any advantage to forming (a parent-subsidiary structure) when one *only owns one* LLC? For example, would there be any legal advantages to forming a general umbrella LLC as a parent, to put a current LLC under and any future LLC's that may be created?
Yes and I have multiple videos on this strategy.
@@ClintCoons I looked for those videos but was unable to find them, do you think you could post one of the titles so i can look it up please?
Excellent video! I hear a lot on the internet as Nevis LLC being the ultimate protection. I've seen your other videos on Wyoming LLC and Manager managed and member managed LLCs. Does the Wyoming LLC provide the same protection if setup properly? Thanks
A WY LLC can provide excellent protection if it is set up properly.
Thank you. I was not clear on the last one. Should we put that there is No Officer Appointment Provisions in the LCC?
No you want officer appointment provisions.
I have to watch the video again because the way you wrote the list were contradictions sometimes like member managed which is a no but restrictions on transfer is a yes. Confusing a bit.
Restrictions on transfer prevent someone from gifting away their interest in the LLC without your approval. The management is a different issue and it deals with who has control over the company. I hope this helps clear up any confusion. Thanks for watching.
Very helpful. Thanks for posting!
You bet!
Hi Clint, in OA of Cali LLC that has manager (managed) a holding WY LLC in that case, member should be WY LLC or Personal Name with Cali agent address? To buy rentals Holding Manager Managed LLC or Personal Name in OA?
I have learned a lot. Thank you sir for your time and generosity!
My pleasure!
Hi, watched your video and it was the most informative one i have seen yet! Do you have an operating agreement template that I can purchase from you? If not, can you recommend one. Thank You!
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/clintss or you can send me an email at ccoons@andersonadvisors.com, and I will have someone contact you.
Hey Clint loved the video!!
I wanted to ask if you had a downloadable edition of a base operating agreement that we could use?! I’m looking to act as my own registered agent as I set up my LLC but don’t know where to find an operating agreement of this caliber to use! Thank you!!
We do not.
Easiest subscribe button I ever pushed. Thank you sir.
Thanks and welcome
Thank you wish we luck restructuring my LLC today, LLC SOLE member which to muli member
Best of luck!
Hi Clint, I've watched this video multiple times, and am writing up my Operating Agreement for a JV LLC manager-managed (two managers: my corp, and my partner's corp).
Some of the "8 stupid mistakes" are not mentioned at all in the free template I am using online . There is an option for additional clauses on the form. If the mistakes above are not mentioned at all, should I just leave it, or add statements to the additional clauses as such:
1) Company agreement will not have forced distributions.
2) Company agreement will include Non Pro Rata distributions.
3) Company agreement will not have charging order language.
4) Company agreement will include restrictions on transfer of interests.
5) Company agreement will have no right to return of capital.
6) Company agreement will have no officer appointment condition.
If I should add these, please let me know if I screwed up on any of the 6 I listed. Another poster had asked you if he should have NO net to all of the mistakes, except Non Pro Rata and you said yes to him. After listening to your video again, it sounds like you're saying that we WANT an officer appointment condition, so maybe that should be: Company will have officer appointment condition???
A JV LLC is a different animal all together and many of the provisions you need in your personal LLC will not translate into a JV LLC. I would recommend you consult an attorney to draft your operating agreement. I have seen far too many JV deals go bad.
I think on number 6 about officer, he meant the opposite: to allow office appointment.
Thanks for the input. A question: You wrote "No Officer appointment provision," but your explanation says that you do want an officer appointment provision. What did I miss?
Operate as president for control with officer provisions ,gives flexibility . No as in not having these provisions =bad good luck 🍀
The mistake is that when an officer provision is NOT included. His language included a double negative. I had the same question..had to replay a few times for clarity therefore be sure to include the provision
Very informative video...love it :) I have questions: If single owner llc, non-prorata, restriction on transfer clauses apply to it? Plus, is it still ok to use manager managed for 1 owner llc? I am thinking those clauses apply for multi owners. Also, do you have a service just for operating agreement only?
Correct the SMLLC will be different. Yes we offer LLC drafting services.
@@ClintCoons Hi, I would like to buy a strong drafted agreement like this. How do I buy it? :)
I'm a new investor in real estate as in starting from scratch and ill be be building my portfolio aggressively however this information is golden sir thankyou very much. Wish you were in my town to hire for what im about to embark in for your professional guidance.
Great. Thanks for watching.
i just want to say ,thank you very much. Awesome podcast sir!
Thanks
AMAZING. Thank you for sharing this with us.
Ron Swanson’s mustache
Thanks for watching.
Oh I wish you could make my operating agreement after watching this, I am definitely using these though. As I am forming an LLC in around a month, I am 75% owner.
Thanks
@@ClintCoons Can you help anyone with an operating agreement legally if services are paid for? Or is it restricted by state for you? I am using Zenbusiness to file most likely as it is way faster and cost effective. Thank you for your time and I hope you have a great day.
@@mr.stirfry9310 Yes we can help anyone with their business formation.
Wow there's so much that I didn't know that I didn't know about LLCs. Thanks
Happy to help!
Thanks so much for the video! Quick question. Is there a way to have it manager managed and maintain anonymity?
In some states it is possible.
In the Still of the filled in the attorney of the operating agreement in the property manger in the LLC
IN THE STATEMENT THE FORCED RATA ARE IN PRO RATA DISTRIBUTION
THE CHANGING LANGUAGE NO RESTRICTORS OR TRANSFERS
IN The reception revision description restrictors are in there is no officer appointment provision😊😊🎉🎉🎉
All of the provisions you mentioned are these for any sized company? what if you are a single person company?
50/50. Some are more important when you have a partner.
Great video, much appreciated! I’m about to download the link. Can anyone let me know, I assume all these tips are already including in the link for the operating agreement? Thanks.
I’m trying to setup a one member LLC so I want to assure that I make it as iron clad as I can while maximizing my taxes advantages. I’m in California but looking towards a Wyoming, Delaware setup but operate in California. Any tips for setting up is appreciated. Thanks.
Thanks for sharing critical information. Will the 3-8 apply to a 1 member LLC?
Yes it will
Yes these will.
Hey Clint, thanks again for this vid.
Question 1 - would the "Restrictions on Transfers" language conflict with what you stated in another video about creating an Assignment and transferring the LLC into, say, a Living Trust? Since this "Restriction on Transfers" is designed to make it difficult to transfer an LLC's interest, would it make it naming the Living Trust as the owner more difficult?
Question 2 - if it's a Manager-Managed LLC, how would the Officer Appointment provision work? Would the Manager or the sole Member (in my case) have the authority to designate Officers?
No one knows if you transfer an LLC into a living trust via an assignment. It is not recorded anywhere. #2 really no need to use officers in a manager managed but if you wanted to name an officer the managers would pass a resolution appointing an officer.
I am planning to create a single member LLC as a health care provider. These mistakes all appear to me to be specific to multi-member LLC's, is that correct? Do any of these 8 mistakes apply if creating a single member LLC? Are there any issues I need to worry about if starting a single member LLC?
I would definitely want these in my LLC
Manager managed
No forced Distributions
Charging language provisions
Tax provisions inline with what LLC you want to run
thanks for the amazing information hope to answer my question. is it necessary to add how much the owner will contribute? and how it will help him in the future? for single LLC
No need
FANTASTIC TO THE POINT AND VERY HELPFUL!
Glad it was helpful!
I’m thinking about starting a smllc taxed as a c corp and I’d love to see a longer version of this video could I maybe pay you to create a longer version of this?
I welcome the idea - what exactly would you like to see more of e.g., more issues with operating agreements or a deeper dive into specific areas?
Great video Clint, thank you
Glad you enjoyed it
Absolutely amazing! Your a genius!!!!!
Thank you 1000 times over again 🙏for this information!!!!
Happy to help!
Is an S corp rental property still protected in a revocable trust if you are presented with an injury lawsuit. I read something that said the revocable (or changeable ) trust can make entity protection null and void. Thanks for any input you can give.
The living trust does not offer any asset protection.
I wish you said 2:33 from the start haha. Also if the Parent Co is WY LLC, is Change Order Language even necessary since WY would provide this protection to being with? Further, if it's a single-member LLC and the In-state and WY doesn't require an Operating Agreement, should I even bother with one? Thanks for sharing this video!
Absolutely you need an operating agreement. The charging order language is important because it reinforces your election to keep you interest from being assigned to a creditor. Further imagine what could happen if a state court asserted jurisdiction over a creditor claim against your interest in a WY LLC and you do not have an operating agreement to rebut it.
As for the Officer provision, should it be both in the WY holding company’s operating agreement and in a a subsidiary LLC’s agreement? Let’s say, subsidiary LLC’s agreement says that member(WY) is responsible for management of this subsidiary, and Member appoints a certain person President of this subsidiary. Would that be sufficient?
Typically I would put them in the subsidiary LLC operating agreements. You are the manager of the holding company so it is not necessary.
Hi Clint, on your suggestion #5--- Is it mandatory that you put a tax provision on the OA? What if I want to be taxed as a disregarded entity first and then change to S Corp down the road. This means I would have to amend my OA whenever i change my tax status? Is it better to keep it silent on the matter.
A disregarded entity is silent for the most part. Typically it contains one paragraph indicating the entity is disregarded. If you want to switch to an S-Corp, yes I suggest you amend your operating agreement to incorporate the tax provisions. I think this is important from an audit perspective.
Good information
Thank you so much for info. I have a single member LLC. Does it apply to me or only for multi member LLC. Im in Alabama If this is relevant for a single member LLC, I will need to make sure I have it set up correctly. Did I interpret correctly?
1 set up as a manager manage
2. no forced distribution
3. Set up as a non pro rata distribution
4.no charging language
5. no restrictions on transfer of interests
6. make sure tax provision is lined up with LLC (I still need to understand how it needs to be worded),
7. no right to return of capital
8. And no officer appointed provision
Is this correct?
Set it up as follows:
Manager managed if you are not looking for anonymity
No forced distributions
Allow for pro-rata distributions
Charging order language
Restrictions on transfer of ownership
Not sure on the tax election you plan to make for your LLC so cant answer this one
You should not have a right to return of any capital you contribute to your LLC
You do not need officer provisions with this structure.
So I should state provisions inn the agreement that appoints me as the president and appoint officer provisions, I'm confused on this subject
Yes, I am confused on that too.
Yes or leave open the opportunity to appoint yourself later by giving the LLC the ability to have officers.
So much good info have a question. I set up my LLC as member but I am the only member do I still have amenity.
It would depend on the state and what information is collected.
I set my LLC up in Delaware
Clint, before creating an LLC, can a person acquire a registered agent and use that information for acquiring a EIN?
Are umbrella LLC structures more protective than having individual LLC corporations?
An RA can not be listed as the responsible party for your entity because they do not have the necessary ownership or control. Individual LLCs owned by an umbrella LLC (Wyoming Holding LLC) is the preferred structure.
Outstanding video as to the NUANCES OF LLCs
Thanks