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so you invested in real estate and now you need an operating agreement for your LLC well here are key Provisions you need in your operating agreement [Music] lets start off by mentioning that the IRS actually looks at these provisions and if you dont have them in your operating agreement you could end up paying a lot more taxes than you actually need to an LLC is a legal entity but not a tax entity notice that theres a difference between the two a legal entity refers to an entity recognized by state law while a tax entity refers to an entity recognized by the IRS LLCs are taxed either as a partnership a corporation or a disregarded entity the default tax entity for LLCs with multiple owners is a partnership so if you go online and download a template operating agreement its going to include partnership language the default forms used by attorneys are also usually for llcs taxes Partnerships so if you want your llcs tax entity to be a corporation or a disregarded entity the tax la
