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Joseph McCormick's avatar

Some friends and I are probably going the LLC route in buying property together. Thanks for all the resources you have shared online!! Would you be willing to share the bylaws/ownership agreement that you all use, to save me some time in writing up drafts etc? We plan to come up with our own guidelines and then bring that to a lawyer to make it official. I'm also curious if you see any way to get around the tax redundancy of paying yourself? We are thinking of calculating rents the way you all do, but then cancelling out what owner-residents would receive back, and then letting everyone pay based on what they actually would have to once all is divided out. Is that tax evasive? Does that make sense?

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Rebecca's avatar

Hi there,

I recently started a community with a group of five friends & family in Pennsylvania, and we came up with a very similar structure except that our LLC is an owner-managed general partnership (not a limited partnership). It's reassuring to see that there is someone else out there doing this structure where owner-residents pay rent to the LLC they own! I'd love to compare notes sometime.

A specific question I had is how does the "community" collect funds to pay rent to the LLC? Does the community have its own separate legal structure? If not, how did you make a joint bank account between 20 people? We have the individual owner-residents pay rent individually to the LLC, but I've been curious about a way to pool funds for household expenses that are not "business" related for tax purposes.

Also, for the folks in the comments asking about template operating agreements, I'd be happy to share the operating agreement for my community's LLC.

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