4 ms·

Yeah the original article is almost worthless. The 2nd article you just linked is much better, and usefully informative. However, it still needs: - info about

Yeah the original article is almost worthless. The 2nd article you just linked is much better, and usefully informative. However, it still needs: - info about the need for an operating agreement - more detail about piercing the corporate veil - discussion of FTB and IRS reclassifying as hobby business You are advertising to a very technical audience and should address these things at a deep level.

theptip 9y ago
I strongly disagree with "almost worthless"; assuming you've made the decision to form a CA LLC, this post is very useful. You're making some quite strident demands of some random person on the internet here ;) Having said that, I too would be interested in the extra topics that you listed, particularly the operating agreement piece. I looked into this recently and NoLo offers a $100-300 service [1] which comes with options, vs. free Operating Agreements like this random one on UpCounsel[2]. I have no idea what the parameters are on this, and in the past I've just leant on a lawyer friend to do this for me; I'd like to understand the details. [1]: https://store.nolo.com/products/online-california-llc-ptlca-2.html https://store.nolo.com/products/online-california-llc-ptlca-... [2]: https://www.upcounsel.com/single-member-llc-operating-agreement https://www.upcounsel.com/single-member-llc-operating-agreem...
- jiveturkey 9y ago
  I paid $1000 to a lawyer for an operating agreement. It was fine. For my 2nd LLC I just copied a free template (different than my expensive lawyer'd one) since I now had a really good understanding of what needs to be there. At first yes it's scary to think you might be getting it wrong, but you learn that it's not rocket science. It's basically the agreement between the members of the corporate structure. I haven't read the NOLO one but I bet it's good value for money. You will generally have to present the operating agreement to the bank to open a business account, to get business financing, maybe for insurance, stuff like that. My experience (IANAL) is that for friendly partners, the nolo template is going to be fine. If you're selling shares to folks that you don't have a history with, you may want to have the assurance of expert, personal legal advice from someone you can also go back to with future concerns. And for that kind of bigger LLC anyway, the $1000 or so is a reasonable expense.
  - mikeryan 9y ago
    I’m not sure a template is the way to go with multi member. If you are going multi member you should really both get a lawyer to explain the details and review the docs. I’ve had to unwind a multi member LLC into a single member one and gaps in our operating agreement were suddenly all too relevant.
akanet 9y ago
I don't think it's very nice to call the work of someone trying to contribute information to the group "worthless".
- jiveturkey 9y ago
  I call it that because it's trivial information, easily obtained anywhere. It doesn't need to be re-re-re-told. First google result for the obvious 'how to file llc california': https://howtostartanllc.com/california-llc https://howtostartanllc.com/california-llc Just as readable as the original article and goes into some more useful admin details, such as the need to get a business license, seller's permit, etc.
  - samstave 9y ago
    Bullshit. It is trivial to you, and you're just being a jerk. Fucking educate people. Don't Condescend.
    - jiveturkey 9y ago
      I did educate. I gave you the very first google link, which has better info than the OP. You do realize this post isn't "informing" people, it's an advertisement, right?
  - gk1 9y ago
    Good for you. You should read this: https://xkcd.com/1053/ https://xkcd.com/1053/
mmckelvy 9y ago
Lol! Glad you at least liked the second article a little better. I have some plans for future posts that will delve a little further into the weeds on various structuring / finance / tax topics.

theptip 9y ago

I strongly disagree with "almost worthless"; assuming you've made the decision to form a CA LLC, this post is very useful. You're making some quite strident demands of some random person on the internet here ;) Having said that, I too would be interested in the extra topics that you listed, particularly the operating agreement piece. I looked into this recently and NoLo offers a $100-300 service [1] which comes with options, vs. free Operating Agreements like this random one on UpCounsel[2]. I have no idea what the parameters are on this, and in the past I've just leant on a lawyer friend to do this for me; I'd like to understand the details. [1]: https://store.nolo.com/products/online-california-llc-ptlca-2.html https://store.nolo.com/products/online-california-llc-ptlca-... [2]: https://www.upcounsel.com/single-member-llc-operating-agreement https://www.upcounsel.com/single-member-llc-operating-agreem...

jiveturkey 9y ago
I paid $1000 to a lawyer for an operating agreement. It was fine. For my 2nd LLC I just copied a free template (different than my expensive lawyer'd one) since I now had a really good understanding of what needs to be there. At first yes it's scary to think you might be getting it wrong, but you learn that it's not rocket science. It's basically the agreement between the members of the corporate structure. I haven't read the NOLO one but I bet it's good value for money. You will generally have to present the operating agreement to the bank to open a business account, to get business financing, maybe for insurance, stuff like that. My experience (IANAL) is that for friendly partners, the nolo template is going to be fine. If you're selling shares to folks that you don't have a history with, you may want to have the assurance of expert, personal legal advice from someone you can also go back to with future concerns. And for that kind of bigger LLC anyway, the $1000 or so is a reasonable expense.
- mikeryan 9y ago
  I’m not sure a template is the way to go with multi member. If you are going multi member you should really both get a lawyer to explain the details and review the docs. I’ve had to unwind a multi member LLC into a single member one and gaps in our operating agreement were suddenly all too relevant.

akanet 9y ago

I don't think it's very nice to call the work of someone trying to contribute information to the group "worthless".

jiveturkey 9y ago
I call it that because it's trivial information, easily obtained anywhere. It doesn't need to be re-re-re-told. First google result for the obvious 'how to file llc california': https://howtostartanllc.com/california-llc https://howtostartanllc.com/california-llc Just as readable as the original article and goes into some more useful admin details, such as the need to get a business license, seller's permit, etc.
- samstave 9y ago
  Bullshit. It is trivial to you, and you're just being a jerk. Fucking educate people. Don't Condescend.
  - jiveturkey 9y ago
    I did educate. I gave you the very first google link, which has better info than the OP. You do realize this post isn't "informing" people, it's an advertisement, right?
- gk1 9y ago
  Good for you. You should read this: https://xkcd.com/1053/ https://xkcd.com/1053/

mmckelvy 9y ago

Lol! Glad you at least liked the second article a little better. I have some plans for future posts that will delve a little further into the weeds on various structuring / finance / tax topics.