8 Stupid Mistakes in Your LLC Operating Agreement

In this video, I'm going to talk about some mistakes that I see often when I review existing operating agreements that people have set up with inexperienced attorneys that are not familiar with creating operating agreements for real estate investors.
Here are eight mistakes I want to show you that I see many times in operating agreements that you should look to avoid in putting together your LLC operating agreement.
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#operatingagreement

[@ClintCoons]

Claim Your FREE 45-minute consultation to receive business planning tips and asset protection. 👉 aba.link/lgo

[@eniseddiplomacyalliance7185]

Thanks do you provide copies of transcribe words ,templates

[@deannalove9073]

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 :)

[@ClintCoons]

@@deannalove9073 An online business in which you are the sole owner would not need every provision I discuss in this video.

[@iynobhetter115]

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?

[@ClintCoons]

@@iynobhetter115 Iyno we can assist. See the link in the show notes to set up a strategy session.

[@yoshisaidit7250]

1: Manager managed 2: No forced Distributions 3: Non-Pro Rata Distributions 4: No Charging language 5: Restrictions on transfers 6: Tax provisions inline with what LLC you want to run 7: No right to return of capital 8: Appointment of officers

[@nathanthaconqueror5790]

Great video only one that worries me from my studies is manager managed without another member might have the IRS diagnosis it on the back end as a sole proprietorship

[@DanielSpringer]

Shouldn't #8 be, 'Appointment of Officers'? I believe he was making the case for adding an officer provision. Thanks

[@yoshisaidit7250]

@@DanielSpringer You're right

[@MusafirsSoul]

@@DanielSpringer That's right. He meant exactly this. His this video is about 8 mistakes so 8th mistake is "not appointing officers"

[@lonnylynn2409]

@@nathanthaconqueror5790 if you only have one member in your LLC, you are a Sole proprietor with no protection from IRS anyway

[@randomloverboy]

I can’t believe he’s giving this information for free! This is well covered and ingenious!

[@ClintCoons]

😀

[@gaiustacitus4242]

The catch is in what he isn't giving away for free. This is just the bait needed to get fish on the hook.

[@newagain9964]

@@gaiustacitus4242still free info. Whether or not u want to trace with him is a diff debate

[@jedburlingham3593]

Great content, Clint. The mistakes one can make on an LLC in their state are HUGE. Thanks for bringing those points to our attention!

[@lathanadams4551]

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!

[@ClintCoons]

Thanks

[@MusafirsSoul]

& coming straight from a legally qualified experienced professional! Presentation is too good too in every video. Thanks Mr Coons

[@11962]

This guy is the real deal. Ask your local attorney about this and see how of these he or she can even list

[@r00ben]

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!!

[@ClintCoons]

Glad it was helpful!

[@SANDHAPPS]

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.

[@ClintCoons]

Glad to help!

[@shoshanna8475]

outstanding! thank you

[@powercompass]

Best video I watched in KZbin 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.

[@ClintCoons]

Great to hear! Thanks for becoming a subscriber.

[@lisakeene1407]

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.

[@ClintCoons]

Lisa Keene Thanks for watching.

[@jonathancabanas9746]

Thanks Clint I just opened an LLC and this video gave me a clear idea on what to add and expect.

[@ClintCoons]

Glad it helped!

[@mberrynunez]

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.

[@ClintCoons]

Well said!

[@bamideleolora6923]

@@ClintCoons is there a book i can read on these things

[@antonioaa8097]

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.

[@ClintCoons]

Antonio AA Thanks for watching.

[@mystudent11]

Just finished listening to you for the first time. I became a member. You are a wonderful teacher/ professor.

[@ClintCoons]

Thanks and welcome

[@OnlyLegendswin]

Just subscribed, I love the impactful information. It's a breath of fresh air to hear someone who's an effective communicators.

[@ClintCoons]

Thanks Antonio.

[@zingotacos7580]

Thank you, for the information. It's a blessing!!

[@user-nu9xt8qh8u]

Love your videos!! Have watched several today! So informative!! Thank You!

[@myuniqueunicorn]

The information that you give is so thorough it makes me feel invincible thank you for everything

[@ClintCoons]

You are welcome. Thanks for watching.

[@myuniqueunicorn]

How do I become a student I really need help

[@ClintCoons]

@@myuniqueunicorn If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@stylzkeyz]

Harvard may still have openings 😂

[@TONYTINTON]

Professional and passionate. Quantified! Thanks so much for taking your time out for us all.

[@ClintCoons]

Thanks for watching!

[@user-sg5nu3nr3o]

Thank you. It's helpful information.

[@chazcao5661]

I have learned a lot. Thank you sir for your time and generosity!

[@ClintCoons]

My pleasure!

[@WideAwakeHuman]

Yeah very good points... Never pin yourself down with rules when you can leave it open ended because you control it anyway. Awesome info!

[@ClintCoons]

Exactly!

[@melg1372]

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.

[@ClintCoons]

MeL G Thanks for watching.

[@mamotivated]

Absolute rock solid content. Thank you.

[@wonderingmind5072]

I literally have watched llc videos for just this month as a filter. Best video so far!

[@ClintCoons]

Wow, thanks!

[@gilbert_tekeoh]

Really love the 8 outlined mistakes. Would love to watch another video on the many other mistakes. Just subscribed. 🤜✅🤛. Thanks a lot.

[@ClintCoons]

Thanks for the sub!

[@larenzwaters2195]

lots of valuable information. thanks dude !

[@ashleycosme756]

You are amazing and so educated. Knowledge is priceless, thank you for sharing what you know with everyone.

[@ClintCoons]

You are so welcome

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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

[@NikoBellaKhouf]

Wow there's so much that I didn't know that I didn't know about LLCs. Thanks

[@ClintCoons]

Happy to help!

[@bryanTVchannel]

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 :)

[@dahliacambey4697]

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

[@BrookeLyn39]

These are the answers to the questions I couldn't formulate.

[@rankontop5041]

Just was scrolling and seen this. wow! Thank you! very informative on mistakes on llc agreements! Subscribed.

[@ClintCoons]

Rank On Top Thanks for watching.

[@mrthomas7808]

THANKS A MILLION!!! I had no choice but to subscribe, since you answered a lot of unasked questions.

[@ClintCoons]

Thanks for the sub!

[@trueinnovations]

For a newbie to the game this was very necessary and informative.....

[@lisarogers5873]

Great info. Makes sense of the legal terminology most of us are not familiar with.

[@ClintCoons]

Thanks

[@shadidwebsitesonlinemarket6021]

Thank God for the internets and KZbin! 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!

[@ClintCoons]

Wow, thank you!

[@paulineerickson]

Thank you for this valuable information without any fluff. I appreciate this. I searched for it and you popped up. Wallah 🙏🏻

[@ClintCoons]

Glad it was helpful!

[@dcmiracles2785]

WOW! Thank you so much for sharing your valuable expertise! We really appreciate your willingness and generosity! Thank you!

[@ClintCoons]

DC Miracles Thanks for watching.

[@raymondspagnuolo8222]

Very helpful. Thanks for posting!

[@ClintCoons]

You bet!

[@gypsysomewhat7125]

Absolutely amazing! Your a genius!!!!! Thank you 1000 times over again 🙏for this information!!!!

[@ClintCoons]

Happy to help!

[@rubinachikte]

FANTASTIC TO THE POINT AND VERY HELPFUL!

[@ClintCoons]

Glad it was helpful!

[@realthoughts6952]

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.

[@ClintCoons]

Glad it was helpful!

[@ronswansons_mustache]

AMAZING. Thank you for sharing this with us.

[@ClintCoons]

Ron Swanson’s mustache Thanks for watching.

[@dedriccarroll2]

Thanks for the information. Very helpful!

[@ClintCoons]

Glad it was helpful!

[@allinsuranceadvisors5534]

This is by far, the best video I've seen about this topic.

[@ClintCoons]

thanks for watching and the comment.

[@MKEKUqweli]

GREAT INFO. THANKS SIR!

[@PemPem242000]

Excellent video. Well explained info. Thanks again 👍🏾

[@ClintCoons]

Glad it was helpful!

[@theoolfactivo9758]

Would love to see a continuation of some other important things to include. Both for anonymity and Common LLC. Love your videos

[@ClintCoons]

Will do!

[@user-kk3kc5zq9r]

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

[@juliejohnson2251]

Very informative! Thanks for the info. Great job! 👍👍

[@ClintCoons]

Glad it was helpful!

[@charivari85]

Great information- thanks for sharing!

[@ClintCoons]

Glad it was helpful!

[@CBNCrazyNews]

I love your Channel!!! Exceptional information ℹ️

[@ClintCoons]

Thank you so much!

[@nibraszuhair]

upcoming 19 year old real estate investor. Your videos help me a ton, just subbed.

[@ClintCoons]

Fantastic!

[@josuesyprienmarseille2842]

Doesn't anyone realize how helpful these tips are? Thank you sir

[@ClintCoons]

Nice of you to say so. Thanks for watching.

[@josuesyprienmarseille2842]

You're certainly welcome

[@isldgrl2008]

This was excellent information, thank you!

[@ClintCoons]

You are welcome.

[@bossman158]

Great info!!!!!

[@laurawilson5722]

Oh boy.. I really needed that!! Thank you, Mr. Coons.

[@ClintCoons]

You are so welcome

[@user-kk3kc5zq9r]

Outstanding direct to the point priceless information for free. Clint may you be continually blessed you absolutely rock!!!

[@ClintCoons]

@user-kk3kc5zq9r Thanks for watching.

[@mikebrownsteadbrownsteadre8037]

GREAT Video, thank you!

[@ClintCoons]

Glad you liked it!

[@sred5856]

Yes, really good and informative video like always!

[@ClintCoons]

Thanks again!

[@meowzah2495]

Wow this info was what I needed! Thanks so much.

[@ClintCoons]

Meow Zah Thanks for watching.

[@dannyarellano50]

Such a great video. Thank you very much for that information.

[@ClintCoons]

Glad you enjoyed it!

[@ZachCasey]

Great advice as always, thanks Clint!

[@fcruzdj2]

This was awesome! Thanks Clint!

[@ClintCoons]

Glad you enjoyed it!

[@lorenzostevens251]

Clint, please continue to put out amazing content!

[@chrisseeley1677]

Great video Clint, thank you

[@ClintCoons]

Glad you enjoyed it

[@karenpariag7181]

Great info...thanks Clint.

[@ClintCoons]

You bet

[@elliottthomascollection9467]

Great Info Thanks

[@jamescustus9253]

Very informative!!

[@alliesteamc3546]

This is extremely helpful and useful! Many thanks!

[@ClintCoons]

You bet.

[@lauraculotta708]

Great video. Questions I didn’t think to ask.

[@ClintCoons]

Glad it was helpful!

[@johnbrown8202]

Thanks great information!!!

[@ClintCoons]

Glad it was helpful!

[@emmmmmmmmmm777]

This is great!

[@healthfullivingify]

Great tips, Clint. Thanks!

[@ClintCoons]

Glad it was helpful!

[@reesehousehold6626]

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!

[@ClintCoons]

You want charging order and officer provisions.

[@scottwhitley2242]

Excellant content. Very helpful. Thank You!

[@ClintCoons]

Glad it was helpful!

[@indupacs.a.6215]

Excellent! Thanks a lot!

[@ClintCoons]

Glad it was helpful!

[@keshagoode1545]

Very helpful information!!!

[@ClintCoons]

Glad you think so!

[@Fekadukebede1]

that is great info. thank you fo,r sharing

[@ClintCoons]

Glad it was helpful!

[@alliesteamc3546]

Thanks for sharing!

[@ClintCoons]

Thanks for watching!

[@stevenphelps5626]

i just want to say ,thank you very much. Awesome podcast sir!

[@ClintCoons]

Thanks

[@alliesteam9776]

Great points

[@monicasamita2282]

Very educational and informative greatly appreciated

[@ClintCoons]

thanks.

[@deffsam]

Clint , great stuff!

[@Paka6267]

Can’t figure out why 3 people didn’t like this video?!? Great info Clint !

[@lesterjones0830]

excellent information. Thank you for the this!!!

[@ClintCoons]

Glad it was helpful!

[@crownchrist]

Mane ! I subbed a while back but not sure where these vid Gems have been 👏

[@ClintCoons]

Excellent

[@tjmyers7851]

Thank you. Very helpful.

[@ClintCoons]

You're welcome!

[@HODL-Diamond-Hands]

great info. thank you. subbed.

[@ClintCoons]

@Lustifer01 Thanks for watching.

[@Purenrgy]

It would be nice if you had a example template of these provisions for those of us trying to create our own Operating Agreement

[@user-hr9tr4ro8b]

THANK YOU very much for this free education 🙏 God bless you for sharing your knowledge 🙏

[@ClintCoons]

So nice of you

[@michaelthomas3476]

great info.

[@Joshalund]

This is Very Helpful, Thanks

[@ClintCoons]

You bet.

[@JayCalderon211]

Thank you for the info. that was very good

[@ClintCoons]

Glad it was helpful!

[@TheMarcoflint]

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)

[@krisnaross]

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?

[@ClintCoons]

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.

[@ericfine325]

@@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.

[@ClintCoons]

@@ericfine325 Thanks Eric.

[@judahsamaria5250]

Great video learned a lot thank you.

[@ClintCoons]

Glad you enjoyed it

[@semoneugbomah8750]

A must watch!!!! When creating a company.

[@ClintCoons]

Semone Ugbomah Thanks for watching.

[@xChuchi14x]

Thanks for your good tips…. 👍🏾

[@ClintCoons]

You are welcome

[@essare108]

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....

[@ClintCoons]

Wow, thank you

[@LoveLove-ul8pi]

Makes me feel safe