Hi Folks, We did most of the negotiation prior to contract. DD should be just physical DD, pipes/infrastructure stuff. All lot rent, all city utilities.What suggestions might you have re setting up 2 member LLC, books managed by a tax accountant / book keeper. We’ll use a real estate attorney to setup the LLC or at least the opperating agreement the meat part of an LLC. Just my partner and I, great relationship but the operating agreement needs to cover all the usual issues.
Curt,The biggest “to do’s” are between you and your partner (with the great relationship) now. You have to go through all of the “what if’s” that you can think of. Some that come to mind are: death or illness of one of the partners, what are the individual partner’s responsibilities, what if one partner wants out, what if more money needs to be put in and one partner does not want to do it, what if one partner wants to sell and the other doesn’t)? Thinks about everything that can go wrong and how the two of you want to deal with it and then it can be written up in an operating agreement.There are literally shelves full of books in law libraries on “close corporations” in which issues of what can go wrong and lead to litigation. You cannot cover every eventuality, but at least discuss the major ones. Setting up the books is a minor issue. You can do it or hire accountant help. The partnership agreement between you and your partner is by far the most important.Howard