Vacation Rental Permit

[Michael-And-Sheila0]

One of our properties is in a city that requires us to have a Vacation Rental permit. There are 13 permits in our "neighborhood" and we are second in line, which may take years for our "number" to come up.

In the meantime, the city allows for a "bed and breakfast" as long as the owner occupies part of the house. My wife and I will be out of state for a year and a half doing service work at BYU Hawaii.

Our real estate agent told us that we can add the property to an LLC and make a "tenant" who occupies the lower floor to be a member of the LLC.

So, we are in the process of creating an LLC, putting the property in the LLC and making the tenant a member of the LLC.

We need to create an Operating Agreement that specifies things like member ownership, responsibilities and such. We plan to give the "onsite member" .01% ownership, which is about $40-50 since the house is worth ~$400,000

Does anyone have experience with creating operating agreement for an LLC?  

[Lorna170]

@Michael-And-Sheila0   This is a legal document for which you should have a lawyer.  Or you can take your chances with an online mill like legalzoom.com. 

[Michael-And-Sheila0]

Thanks for suggesting we need a lawyer... I have researched this a lot and have found little about LLCs and Airbnbs. All of the information I've found about vacation rentals has to do with "second homes" that families have that are used primarily within the family rather that as an Airbnb-type place that is available to a non-family audience. To create an LLC, I feel like I need legal advice on 1% of the information I need to create the LLC so I'm leaning toward creating it myself using what I learn and the diverse LLC operating agreements available online. In the past, I have started 2 non-profit corporations and am confident I can learn what  I  need to do the LLC

[Michael-And-Sheila0]

Here's a great resource to write/create your own legal documents for your LLC Operating Agreement 

https://www.archives.gov/federal-register/write/legal-docs