Family Cabin LLCs Under Minnesota Statutes Chapter 322C

INFORMED Annotated Legal Document with eFormbook

Drafted by James E. Snoxell

There are numerous reasons why a family might want to place their cabin property in an LLC, including facilitating and simplifying transfers of ownership, making easier gifts for estate tax planning, imposing limitations on transfers, liability protection (limiting the risks associated with having a cabin), and providing flexibility for those receiving interest in the cabin.

This InFORMed Annotated Legal Document is for a Family Cabin LLC and includes a detailed introductory discussion of the pros and cons of using an LLC to manage a family cabin and imperative considerations for drafting such documents, along with fully annotated Articles of Organization, Operating Agreement, and Rules and Procedures which include comprehensive and insightful drafting rational, optional clauses, and primary sources of law.

Creating an LLC to hold title to a family’s cabin or other real property used for recreation and to be the source of structure for using and maintaining the subject property has been a popular option, used increasingly since the late 1990s. LLCs formed for this purpose are typically owned by family members of one or more generations, and transfers of LLC ownership are ordinarily limited to family members.

An LLC offers a flexible governance structure, allows for members tailoring terms governing the cabin property to their needs and preferences through an operating agreement, and provides a meaningful degree of protection against personal liability for claims against the entity or other members. This InFORMed Annotated Document was created to assist practitioners in drafting well-considered and sound LLC formation documents in order to give clients another option for managing the family’s beloved lake home!

You will receive:

• Hardcopy Annotated Family Cabin LLCs Under Minnesota Statutes Chapter 322C
  
  

Introduction and General Remarks about the Family Cabin LLC

Articles of Organization of ABC Family Cabin, LLC

Article I Limited Liability Company Name Article II Registered Office Address and Registered Agent Article III Organizer Article IV Company Management Article V Purposes Article VI Duration Article VII Voting Article VIII Amending the Articles of Organization

Operating Agreement of ABC Family Cabin, LLC

Article I Introduction and Recitals Article II Select Definitions Article III Certain Formation Matters – Intentions, Purpose, Offices, and Aspirations Article IV Company Management Article V Managers and Officers Article VI Members Article VII Members Meeting and Voting Article VIII Participating in Meetings by Remote Communication Article IX Personal Liability Article X Duty of Care and Fiduciary Duties Article XI Records, Financial and Fiscal Matters, and Tax Reporting Article XII Partnership Representative Article XIII Indemnification Article XIV Contributions, Dues, Accounts, Loans, Distributions, Allocations, and Withholding Article XV Transfers of Interests and Disassociation Article XVI Amendments to the Operating Agreement Article XVII Miscellaneous Provisions and Governing Terms Article XVIII Members’ Acceptance Exhibit A to Operating Agreement – The Ownership Record of ABC Family Cabin, LLC Exhibit B to Operating Agreement – The Rules and Procedures of ABC Family Cabin, LLC

Initial Member Actions Regarding Family Cabin LLC Organization and Adoption of Operating Agreement Rules and Procedures

Rules and Procedures for Use of the Cabin, Grounds, and Equipment

• Companion eFormbook

Along with the annotated hard copy of the form, each user will also receive an eFormbook, the electronic version of the form with the annotations removed. Once the user is ready to start drafting, they can simply download the eFormbook and get to work! Your annotated manual provides instructions for accessing the eFormbook containing the unannotated electronic document(s) in Microsoft Word.

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